The 5-step model

IFRS 15 unifies revenue recognition behind one model: identify the contract, identify performance obligations, determine the price, allocate it, recognise revenue as obligations are satisfied.

• 01Step 1: identify the contract.
• 02Step 2: identify distinct performance obligations.
• 03Step 3: determine the transaction price.
• 04Step 4: allocate to performance obligations.
• 05Step 5: recognise revenue when (or as) control transfers.