Our ‘Insights into MFRS 15’ series summarises the key areas of the Standard, highlighting some areas that are challenging to apply in practice, to assist reporting entities in understanding how to apply MFRS 15’s requirements.
In many revenue transactions, more than one party is involved in delivering the goods and services to the customer. In those situations, it is sometimes difficult for an entity to determine whether it is acting as a principal or as an agent, and an entity must often apply significant judgement to reach a conclusion. While the principal-agent guidance in MFRS 15 does not eliminate the need for judgement, it is intended to make the principal versus agent assessment easier. This article deals with the principal versus agent considerations of MFRS 15.
How we can help
We hope you find the information in this article helpful in giving you some insight into aspects of MFRS 15. If you would like to discuss any of the points raised, please speak to your usual Grant Thornton contact.
