Commission Regulation (EU) 2016/1905 of 22 September 2016 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standard 15 (Text with EEA relevance) (revoked)

EU Regulation 2016/1905 · Adopted 22 September 2016 · Extends to United Kingdom

Contents

1. 1Article 1 Repealed
2. 2Article 2 Repealed
3. 3Article 3 Repealed
4. Signature
5. Annex Repealed
6. International Financial Reporting Standard 15Revenue from Contracts with Customers Repealed
7. International Financial Reporting Standard 15Revenue from Contracts with Customers Repealed
8. OBJECTIVE Repealed
9. 1Division 1 Repealed
10. Meeting the objective Repealed
11. 2Division 2 Repealed
12. 3Division 3 Repealed
13. 4Division 4 Repealed
14. SCOPE Repealed
15. 5An entity shall apply this Standard to all contracts with customers, except the following: Repealed
16. 6Division 6 Repealed
17. 7A contract with a customer may be partially within the scope of this Standard and partially within the scope of other Standards listed in paragraph 5. Repealed
18. 8Division 8 Repealed
19. RECOGNITION Repealed
20. Identifying the contract Repealed
21. 9An entity shall account for a contract with a customer that is within the scope of this Standard only when all of the following criteria are met: Repealed
22. 10Division 10 Repealed
23. 11Division 11 Repealed
24. 12For the purpose of applying this Standard, a contract does not exist if each party to the contract has the unilateral enforceable right to terminate a wholly unperformed contract without compensating the other party (or parties). A contract is wholly unperformed if both of the following criteria are met: Repealed
25. 13Division 13 Repealed
26. 14Division 14 Repealed
27. 15When a contract with a customer does not meet the criteria in paragraph 9 and an entity receives consideration from the customer, the entity shall recognise the consideration received as revenue only when either of the following events has occurred: Repealed
28. 16Division 16 Repealed
29. Combination of contracts Repealed
30. 17An entity shall combine two or more contracts entered into at or near the same time with the same customer (or related parties of the customer) and account for the contracts as a single contract if one or more of the following criteria are met: Repealed
31. Contract modifications Repealed
32. 18Division 18 Repealed
33. 19Division 19 Repealed
34. 20An entity shall account for a contract modification as a separate contract if both of the following conditions are present: Repealed
35. 21If a contract modification is not accounted for as a separate contract in accordance with paragraph 20, an entity shall account for the promised goods or services not yet transferred at the date of the contract modification (ie the remaining promised goods or services) in whichever of the following ways is applicable: Repealed
36. Identifying performance obligations Repealed
37. 22At 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: Repealed
38. 23A series of distinct goods or services has the same pattern of transfer to the customer if both of the following criteria are met: Repealed
39. Promises in contracts with customers Repealed
40. 24Division 24 Repealed
41. 25Division 25 Repealed
42. Distinct goods or services Repealed
43. 26Depending on the contract, promised goods or services may include, but are not limited to, the following: Repealed
44. 27A good or service that is promised to a customer is distinct if both of the following criteria are met: Repealed
45. 28Division 28 Repealed
46. 29Factors that indicate that an entity's promise to transfer a good or service to a customer is separately identifiable (in accordance with paragraph 27(b)) include, but are not limited to, the following: Repealed
47. 30Division 30 Repealed
48. Satisfaction of performance obligations Repealed
49. 31Division 31 Repealed
50. 32Division 32 Repealed
51. 33Goods and services are assets, even if only momentarily, when they are received and used (as in the case of many services). Control of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset. The benefits of an asset are the potential cash flows (inflows or savings in outflows) that can be obtained directly or indirectly in many ways, such as by: Repealed
52. 34Division 34 Repealed
53. Performance obligations satisfied over time Repealed
54. 35An entity transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met: Repealed
55. 36Division 36 Repealed
56. 37Division 37 Repealed
57. Performance obligations satisfied at a point in time Repealed
58. 38If a performance obligation is not satisfied over time in accordance with paragraphs 35–37, an entity satisfies the performance obligation at a point in time. To determine the point in time at which a customer obtains control of a promised asset and the entity satisfies a performance obligation, the entity shall consider the requirements for control in paragraphs 31–34. In addition, an entity shall consider indicators of the transfer of control, which include, but are not limited to, the following: Repealed
59. Measuring progress towards complete satisfaction of a performance obligation Repealed
60. 39Division 39 Repealed
61. 40Division 40 Repealed
62. Methods for measuring progress Repealed
63. 41Division 41 Repealed
64. 42Division 42 Repealed
65. 43Division 43 Repealed
66. Reasonable measures of progress Repealed
67. 44Division 44 Repealed
68. 45Division 45 Repealed
69. MEASUREMENT Repealed
70. 46Division 46 Repealed
71. Determining the transaction price Repealed
72. 47Division 47 Repealed
73. 48The nature, timing and amount of consideration promised by a customer affect the estimate of the transaction price. When determining the transaction price, an entity shall consider the effects of all of the following: Repealed
74. 49Division 49 Repealed
75. Variable consideration Repealed
76. 50Division 50 Repealed
77. 51Division 51 Repealed
78. 52The variability relating to the consideration promised by a customer may be explicitly stated in the contract. In addition to the terms of the contract, the promised consideration is variable if either of the following circumstances exists: Repealed
79. 53An entity shall estimate an amount of variable consideration by using either of the following methods, depending on which method the entity expects to better predict the amount of consideration to which it will be entitled: Repealed
80. 54Division 54 Repealed
81. Refund liabilities Repealed
82. 55Division 55 Repealed
83. Constraining estimates of variable consideration Repealed
84. 56Division 56 Repealed
85. 57In assessing whether it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur once the uncertainty related to the variable consideration is subsequently resolved, an entity shall consider both the likelihood and the magnitude of the revenue reversal. Factors that could increase the likelihood or the magnitude of a revenue reversal include, but are not limited to, any of the following: Repealed
86. 58Division 58 Repealed
87. Reassessment of variable consideration Repealed
88. 59Division 59 Repealed
89. The existence of a significant financing component in the contract Repealed
90. 60Division 60 Repealed
91. 61The objective when adjusting the promised amount of consideration for a significant financing component is for an entity to recognise revenue at an amount that reflects the price that a customer would have paid for the promised goods or services if the customer had paid cash for those goods or services when (or as) they transfer to the customer (ie the cash selling price). An entity shall consider all relevant facts and circumstances in assessing whether a contract contains a financing component and whether that financing component is significant to the contract, including both of the following: Repealed
92. 62Notwithstanding the assessment in paragraph 61, a contract with a customer would not have a significant financing component if any of the following factors exist: Repealed
93. 63Division 63 Repealed
94. 64Division 64 Repealed
95. 65Division 65 Repealed
96. Non-cash consideration Repealed
97. 66Division 66 Repealed
98. 67Division 67 Repealed
99. 68Division 68 Repealed
100. 69Division 69 Repealed
101. Consideration payable to a customer Repealed
102. 70Division 70 Repealed
103. 71Division 71 Repealed
104. 72Accordingly, if consideration payable to a customer is accounted for as a reduction of the transaction price, an entity shall recognise the reduction of revenue when (or as) the later of either of the following events occurs: Repealed
105. Allocating the transaction price to performance obligations Repealed
106. 73Division 73 Repealed
107. 74Division 74 Repealed
108. 75Division 75 Repealed
109. Allocation based on stand-alone selling prices Repealed
110. 76Division 76 Repealed
111. 77Division 77 Repealed
112. 78Division 78 Repealed
113. 79Suitable methods for estimating the stand-alone selling price of a good or service include, but are not limited to, the following: Repealed
114. 80Division 80 Repealed
115. Allocation of a discount Repealed
116. 81Division 81 Repealed
117. 82An entity shall allocate a discount entirely to one or more, but not all, performance obligations in the contract if all of the following criteria are met: Repealed
118. 83Division 83 Repealed
119. Allocation of variable consideration Repealed
120. 84Variable consideration that is promised in a contract may be attributable to the entire contract or to a specific part of the contract, such as either of the following: Repealed
121. 85An entity shall allocate a variable amount (and subsequent changes to that amount) entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation in accordance with paragraph 22(b) if both of the following criteria are met: Repealed
122. 86Division 86 Repealed
123. Changes in the transaction price Repealed
124. 87Division 87 Repealed
125. 88Division 88 Repealed
126. 89Division 89 Repealed
127. 90An entity shall account for a change in the transaction price that arises as a result of a contract modification in accordance with paragraphs 18–21. However, for a change in the transaction price that occurs after a contract modification, an entity shall apply paragraphs 87–89 to allocate the change in the transaction price in whichever of the following ways is applicable: Repealed
128. CONTRACT COSTS Repealed
129. Incremental costs of obtaining a contract Repealed
130. 91Division 91 Repealed
131. 92Division 92 Repealed
132. 93Division 93 Repealed
133. 94Division 94 Repealed
134. Costs to fulfil a contract Repealed
135. 95If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (for example, IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), an entity shall recognise an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria: Repealed
136. 96Division 96 Repealed
137. 97Costs that relate directly to a contract (or a specific anticipated contract) include any of the following: Repealed
138. 98An entity shall recognise the following costs as expenses when incurred: Repealed
139. Amortisation and impairment Repealed
140. 99Division 99 Repealed
141. 100Division 100 Repealed
142. 101An entity shall recognise an impairment loss in profit or loss to the extent that the carrying amount of an asset recognised in accordance with paragraph 91 or 95 exceeds: Repealed
143. 102Division 102 Repealed
144. 103Division 103 Repealed
145. 104Division 104 Repealed
146. PRESENTATION Repealed
147. 105Division 105 Repealed
148. 106Division 106 Repealed
149. 107Division 107 Repealed
150. 108Division 108 Repealed
151. 109Division 109 Repealed
152. DISCLOSURE Repealed
153. 110The objective of the disclosure requirements is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. To achieve that objective, an entity shall disclose qualitative and quantitative information about all of the following: Repealed
154. 111Division 111 Repealed
155. 112Division 112 Repealed
156. Contracts with customers Repealed
157. 113An entity shall disclose all of the following amounts for the reporting period unless those amounts are presented separately in the statement of comprehensive income in accordance with other Standards: Repealed
158. Disaggregation of revenue Repealed
159. 114Division 114 Repealed
160. 115Division 115 Repealed
161. Contract balances Repealed
162. 116An entity shall disclose all of the following: Repealed
163. 117Division 117 Repealed
164. 118An entity shall provide an explanation of the significant changes in the contract asset and the contract liability balances during the reporting period. The explanation shall include qualitative and quantitative information. Examples of changes in the entity's balances of contract assets and contract liabilities include any of the following: Repealed
165. Performance obligations Repealed
166. 119An entity shall disclose information about its performance obligations in contracts with customers, including a description of all of the following: Repealed
167. Transaction price allocated to the remaining performance obligations Repealed
168. 120An entity shall disclose the following information about its remaining performance obligations: Repealed
169. 121As a practical expedient, an entity need not disclose the information in paragraph 120 for a performance obligation if either of the following conditions is met: Repealed
170. 122Division 122 Repealed
171. Significant judgements in the application of this Standard Repealed
172. 123An entity shall disclose the judgements, and changes in the judgements, made in applying this Standard that significantly affect the determination of the amount and timing of revenue from contracts with customers. In particular, an entity shall explain the judgements, and changes in the judgements, used in determining both of the following: Repealed
173. Determining the timing of satisfaction of performance obligations Repealed
174. 124For performance obligations that an entity satisfies over time, an entity shall disclose both of the following: Repealed
175. 125Division 125 Repealed
176. Determining the transaction price and the amounts allocated to performance obligations Repealed
177. 126An entity shall disclose information about the methods, inputs and assumptions used for all of the following: Repealed
178. Assets recognised from the costs to obtain or fulfil a contract with a customer Repealed
179. 127An entity shall describe both of the following: Repealed
180. 128An entity shall disclose all of the following: Repealed
181. Practical expedients Repealed
182. 129Division 129 Repealed
183. Appendix ADefined terms Repealed