Disaggregation Of Revenue – FAQ | IFRS

Disaggregation of revenue

This part relates to a complete explanation of IFRS 15 Revenue from contracts with customers in respect of Engineering & Construction contracts, see https://www.faqifrs.com/revenue-from-engineering-construction-contracts/.


The disclosure requirements include revenue disaggregated into categories to illustrate how the nature, amount, timing and uncertainty about revenue and cash flows are affected by economic factors. While the standard does not specify precisely how revenue is required to be disaggregated, the application guidance suggests categories, as follows:

  • Type of good or service (e.g., major product lines);
  • Geographical region (e.g., country or region);
  • Market or type of customer (e.g., government and non-government
    customers);
  • Type of contract (e.g., fixed price and time-and-materials contracts);
  • Contract duration (e.g., short-term and long-term contracts);
  • Timing of transfer of goods or services (e.g., revenue from goods or services transferred to customers at a point in time and revenue from goods or services transferred over time); and
  • Sales channels (e.g., goods sold directly to customers and goods sold through
    intermediaries).

E&C entities will need to consider their specific facts and circumstances, as well as how they disaggregate revenue in other communications (e.g., press releases, other public filings) to determine how best to meet this disclosure requirement.

Disaggregation of revenue Disaggregation of revenue Disaggregation of revenue Disaggregation of revenue Disaggregation of revenue

E&C entities will need to consider their specific facts and circumstances, as well as how they disaggregate revenue in other communications (e.g., press releases, other public filings) to determine how best to meet this disclosure requirement. E&C entities will need to consider their specific facts and circumstances, as well as how they disaggregate revenue in other communications (e.g., press releases, other public filings) to determine how best to meet this disclosure requirement. E&C entities will need to consider their specific facts and circumstances, as well as how they disaggregate revenue in other communications (e.g., press releases, other public filings) to determine how best to meet this disclosure requirement.

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