Revenue

Hi Sir,

Would you please explain this as it doesn’t make any sense to me?so:

The company accounting policy is to recognise revenue from sales @ date of plan commences.

But ifrs 15 states revenue can only be recognised when obligation satisfied.

I’m confused with the first statement? How could there be a company policy to recognise it?

Also it doesn’t make sense as it’s not a new client either.
If such policy does exists that means revenue would be overstated every year and there would be an audit risk every year.

Also why would they use such policy if it’s not appropriate?

Thank you in advance.