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.
MFRS 15 introduces the five-step model for revenue recognition which applies specifically to contracts with customers. Given this limitation in scope, the first step of the model is to identify contracts with customers. This article focuses on this step, and explains how to identify a contract with a customer as well as what constitutes a contract within the scope of the Standard.
An overview of the five-step model is below; however for a detailed discussion of the five steps, refer to our article ‘Insights into MFRS 15 – Overview and scope’.
Step 1: Identifying a contract with a customer
How we can help
We hope you find the information in this article helpful in giving you 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.
