Revenue from Contracts with Customers

1 AASB Standard AASB 15. December 2014. Revenue from Contracts with Customers Obtaining a Copy of this Accounting Standard This Standard is available on the AASB website: Alternatively, printed copies of this Standard are available for purchase by contacting: The customer Service Officer Australian Accounting standards Board Postal address: Level 7 PO Box 204. 600 Bourke Street Collins Street West Melbourne Victoria Victoria 8007. AUSTRALIA AUSTRALIA. Phone: (03) 9617 7637. Fax: (03) 9617 7608. E-mail: Website: Other Enquiries Phone: (03) 9617 7600.

2 Fax: (03) 9617 7608. E-mail: COPYRIGHT. Commonwealth of Australia 2014. This AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Director of Finance and Administration, Australian Accounting standards Board, PO Box 204, Collins Street West, Victoria 8007.

3 All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at ISSN 1036-4803. AASB 15 2 COPYRIGHT. CONTENTS. PREFACE. COMPARISON with IFRS 15. INTRODUCTION TO IFRS 15. (available on the AASB website). ACCOUNTING STANDARD. AASB 15 Revenue FROM Contracts with Customers .

4 Paragraphs Objective 1. Meeting the objective 2 4. Application Reduced disclosure requirements Commencement Scope 5 8. Recognition Identifying the contract 9 16. Combination of Contracts 17. contract modifications 18 21. Identifying performance obligations 22 23. Promises in Contracts with Customers 24 25. Distinct goods or services 26 30. Satisfaction of performance obligations 31 34. Performance obligations satisfied over time 35 37. Performance obligations satisfied at a point in time 38. Measuring progress towards complete satisfaction of a performance obligation 39 45.

5 Measurement 46. Determining the transaction price 47 49. Variable consideration 50 59. The existence of a significant financing component in the contract 60 65. Non-cash consideration 66 69. Consideration payable to a customer 70 72. Allocating the transaction price to performance obligations 73 75. AASB 15 3 CONTENTS. Allocation based on stand-alone selling prices 76 80. Allocation of a discount 81 83. Allocation of variable consideration 84 86. Changes in the transaction price 87 90. contract costs Incremental costs of obtaining a contract 91 94.

6 Costs to fulfil a contract 95 98. Amortisation and impairment 99 104. Presentation 105 109. Disclosure 110 112. Contracts with Customers 113. Disaggregation of Revenue 114 115. contract balances 116 118. Performance obligations 119. Transaction price allocated to the remaining performance obligations 120 122. Significant judgements in the application of this Standard 123. Determining the timing of satisfaction of performance obligations 124 125. Determining the transaction price and the amounts allocated to performance obligations 126.

7 Assets recognised from the costs to obtain or fulfil a contract with a customer 127 128. Practical expedients 129. Appendices: A. Defined Terms Page 47. B. Application Guidance Page 49. C. Effective Date and Transition Page 73. DELETED IFRS 15 TEXT Page 76. ILLUSTRATIVE EXAMPLES. (available on the AASB website). BASIS FOR CONCLUSIONS ON IFRS 15. (available on the AASB website). AASB 15 4 CONTENTS. Australian Accounting Standard AASB 15 Revenue from Contracts with Customers is set out in paragraphs 1 129 and Appendices A C.

8 All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the Standard. AASB 15 is to be read in the context of other Australian Accounting standards , including AASB 1048 Interpretation of standards , which identifies the Australian Accounting Interpretations. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

9 AASB 15 5 CONTENTS. PREFACE. Introduction The Australian Accounting standards Board (AASB) makes Australian Accounting standards , including Interpretations, to be applied by: (a) entities required by the Corporations Act 2001 to prepare financial reports;. (b) governments in preparing financial statements for the whole of government and the General Government Sector (GGS); and (c) entities in the private or public for-profit or not-for-profit sectors that are reporting entities or that prepare general purpose financial statements.

10 AASB 1053 Application of Tiers of Australian Accounting standards establishes a differential reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements: (a) Tier 1: Australian Accounting standards ; and (b) Tier 2: Australian Accounting standards Reduced Disclosure Requirements. Tier 1 requirements incorporate International Financial Reporting standards (IFRSs), including Interpretations, issued by the International Accounting standards Board (IASB), with the addition of paragraphs on the applicability of each Standard in the Australian environment.