Inconsistencies between IFRS 10 and IFRS 15

I’m not guaranteeing this but this is what I think.

Imagine you are selling a subsidiary which only has one asset – PPE.

On sale:
1. IFRS 10 implies that on loss of control you would recognise a profit on loss of control as a single line in the P&L.
2. IFRS 15 MIGHT imply that you should recognise the revenue as a single line on transfer of performance obligations, and (presumably) the cost separately (almost like cost of sales).

I’ve plagiarised the following from the minutes of IAS plus;

“The staff analyse that IFRS 15 scopes out contracts with customers that fall within the scope of IFRS 9 or IFRS 10 and as such the entity shall account for the transaction under IFRS 10—i.e. loss of control of a subsidiary. Based on the analysis of consistency with similar requirements in other IFRS Standards, the staff analyse that the resulting gain or loss from the transaction shall be presented as net in one line item in the statement of profit or loss instead of component parts of the gain or loss in separate lines”.

I’m still not absolutely convinced, however – but I am convinced that no one would have written this in the exam.

A much simpler conceptual conflict to explain in the exam would be:

Air Boxo sells ticket to Mrs Perkins for 50. Ticket is non-refundable. They will perform the contract next year:
IFRS 15 – recognise revenue NEXT YEAR – therefore set up deferred income/contract liability
Framework – you can’t set up liability this year because it doesn’t meet definition of a liability
In this case IFRS takes precedence

If I find out any more, I will post it.