International GAAP 2020

Chapter 28Revenue: identify the contract and performance obligations

• 1 INTRODUCTION
• 2 IDENTIFY THE CONTRACT WITH THE CUSTOMER
  • 2.1 Attributes of a contract
    • 2.1.1 Application questions on attributes of a contract
      • 2.1.1.A Master supply arrangements (MSA)
      • 2.1.1.B Free trial period
      • 2.1.1.C Consideration of side agreements
    • 2.1.2 Parties have approved the contract and are committed to perform their respective obligations
    • 2.1.3 Each party's rights regarding the goods or services to be transferred can be identified
    • 2.1.4 Payment terms can be identified
    • 2.1.5 Commercial substance
    • 2.1.6 Collectability
      • 2.1.6.A Assessing collectability for a portfolio of contracts
      • 2.1.6.B Determining when to reassess collectability
  • 2.2 Contract enforceability and termination clauses
    • 2.2.1 Application questions on contract enforceability and termination clauses
      • 2.2.1.A Evaluating termination clauses and termination payments in determining the contract duration
      • 2.2.1.B Evaluating the contract term when only the customer has the right to cancel the contract without cause
      • 2.2.1.C Evaluating the contract term when an entity has a past practice of not enforcing termination payments
      • 2.2.1.D Accounting for a partial termination of a contract
      • 2.2.1.E Services provided during a period after contract expiration
  • 2.3 Combining contracts
    • 2.3.1 Portfolio approach practical expedient
  • 2.4 Contract modifications
    • 2.4.1 Contract modification represents a separate contract
    • 2.4.2 Contract modification is not ...