Grant Thornton's global IFRS and industry teams have issued six industry insight publications that look at how the IASB's new revenue guidance (IFRS 15) may impact entities and their industries. This publication is focused on Life Sciences.
The new Standard replaces IAS 18 ‘Revenue’, IAS 11 ‘Construction Contracts’, and some revenue-related Interpretations with a control-based model centred around the following 5-steps:
- step 1: Identify the contract with a customer;
- step 2: Identify the performance obligations;
- step 3: Determine the transaction price;
- step 4: Allocate the transaction price to the performance obligations;
- step 5: Recognise revenue when/as performance obligation(s) are satisfied.