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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Examples on IFRS15 Step 5 Revenue recognition
Dear Sir,
I am confused on the IFRS 15 Step 5: Recognise revenue OVER TIME.
There are three criteria if only one of which is met, then the Recognise revenue OVER TIME applies.
(1) the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs;
(2) the entity’s performance creates or enhances an asset that the customer controls as the asset is created;
(3) or the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
Could you give examples on each on the condition to illustrate the terms? I am so confused on how they could apply in the case. Thank you!!!