03/02/2025
IFRS-15 Revenue from customers and contracts.
Initial recognition. (The 5 Steps recognition) COPAR
1. Contract
identify contract. (written, verbal, Implied(implicit))
2. Obligation
identify performance obligation (promise to provide service or goods).
3. Price
Determine the transaction price on the date of promise, not the price, as the transaction price is the net price after any discounts or offers (any item that can be sold separately so it considered a separate obligation). It called that the obligation is distinct, has standalone selling price.
4. Allocation
Allocate the price on the performance obligations.
5. Recognize revenue
satisfy the performance obligation, recognize revenue.
