Revenue Not From A Contract With A Customer – FAQ | IFRS

Revenue not from a contract with a customer

Revenue from transactions or events that does not arise from a contract with a customer is not in the scope of IFRS 15 and should continue to be recognized in accordance with other standards. Revenue not from a contract with a customerSuch transactions or events include but are not limited to: Revenue not from a contract with a customer

  • Dividends, Revenue has to be recognized when the owner’s right to receive payment is established. It is only certain when the company declare the dividends on the shares and the directors actually decide to pay the dividends to their shareholders,
  • Non-exchange transactions, such as donations or contributions. For example, contributions received by a not-for-profit entity are not within the scope of the revenue standard if they are not given in exchange for goods or services (that is, they represent non-exchange transactions). Contributions are unconditional transfers of assets (or a settlement of liabilities) to a nonprofit entity that are nonreciprocal — meaning the donor receives nothing of value in exchange for the donation. A contribution should be recognized at its fair market value in the period it was received and/or unconditionally given. Donor-imposed restrictions do not affect the timing or value of the recognition,
  • Changes in the fair value of biological assets, investment properties, and the inventory of broker-traders. Biological assets are valued at fair value less costs to sell, the change in this fair value less costs to sell is recognised in profit or loss, separate from revenue on sales of the biological assets, but included in operating income. Changes in fair value of investment properties are recognised in operating income, separate from net rental income. Trading assets and liabilities are initially recognised and subsequently measured at fair value in the statement of financial position with transaction costs taken directly to profit or loss. All changes in fair value of trading assets and liabilities are recognised as part of net trading income in profit or loss. Trading assets and liabilities are not reclassified subsequent to their initial recognition. Revenue not from a contract with a customer


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