Measuring progress over time (IFRS 15)

For a performance obligation satisfied over time, IFRS 15 requires a method that faithfully depicts the entity’s performance in transferring control of goods or services to the customer. Output methods measure value delivered or results achieved, such as units delivered or milestones, when they faithfully depict performance. Input methods measure effort or resources used, such as costs incurred or labour hours, relative to expected total inputs. Exclude inputs that do not depict performance, such as significant wasted resources, and apply the chosen method consistently to similar obligations and circumstances.