IFRS 15 What is a good/service

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phamgiang0504
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Joined: 21 Nov 2021, 02:40

IFRS 15 What is a good/service

Post by phamgiang0504 »

Hi,
I have trouble identifying performance obligation according to IFRS 15.

Background:
I have to identify PO of a contract. The contract has some articles stating that:
1. Party A transfer goods to party B
2. Party A deliver goods to party B'warehouse
3. Party A grant right of return of goods for party A
4. Party A make payment to party B to support party B distribute the goods (as marketing expense)
5. Party B pay $ XXX as consideration for the contract.

Standard:
IFRS15.22 stated that "At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer either:
(a) a good or service (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer (see paragraph 23).

Question:
1. Do promise 3 and promise 4 present "goods or services promised" under IFRS 15?. Is Consideration (promise 4) a "good or service promised"?
(I cannot find definition for "goods" and "services" under IFRS.)
2. If yes, are promise 3 and 4 obligation performance under IFRS 15?
JRSB
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Re: IFRS 15 What is a good/service

Post by JRSB »

All seems like one to me... you wouldn't contribute to the marketing if they hadn't bought it. 3 is just a standard contractual term.
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Marek Muc
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Re: IFRS 15 What is a good/service

Post by Marek Muc »

points 3 and 4 are not POs, but they impact the transaction price

point 3 - this clause introduces a variability in the transaction price:
https://ifrscommunity.com/knowledge-bas ... sideration

point 4 - this is most likely a decrease in transaction price:
https://ifrscommunity.com/knowledge-bas ... a-customer
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