IFRS for SMEs / Section 23: Revenue from Contracts with Customers
Section 23: Revenue from Contracts with Customers
In the third edition Section 23 follows a five-step model: identify the contract and its performance obligations, determine and allocate the transaction price, and recognise revenue as each obligation is satisfied.
Disclosures to look for
- 23.82 A disaggregation of revenue into categories.
- 23.83 Contract balances.
Third edition
Section 23 in the third edition: the five-step revenue model
On the 2015 edition
The 2015 edition's Section 23 recognises revenue by type of transaction (sale of goods, rendering of services, construction contracts, and interest, royalties and dividends) rather than on the five-step model. Check the 2015 text for its disclosure paragraphs.
How Sight applies it
The revenue note disaggregates revenue by account and switches its policy wording to the five-step model on the third edition.
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