ACCA SBR ^INT Syllabus C. Reporting The Financial Performance Of A Range Of Entities - Criteria for IFRS 15 - Notes ^{1 / 8}

The following must be ok (at inception) before IFRS 15 can be used

1. Both parties have enforceable rights / obligations

2. Contract approved - (as long as both parties cannot unilaterally terminate)

3. Payment terms agreed (not necessarily fixed payments)

4. Commercial substance to the contract

5. Customer can (probably) and intends to pay

These are re-assesses later if not met at inception

IFRS15 applies to all contracts except for:

1. Lease Contracts

2. Insurance Contracts

3. Financial instruments and other contractual rights/obligations within the scope of lAS 39/lFRS 9, lFRS 10, lFRS 11, lAS 27 and lAS 28

4. Non-monetary exchanges between entities within the same business to facilitate sales

Lets say a bank gives you a mortgage (Financial liability) and some other services to do with the property

The mortgage would be IFRS 9
And the other services probably IFRS 15

Basically if another standard deals with the issue - use that standard!