IFRS 15 (Revenue from Contracts with Customers)

IFRS 15 is a global accounting standard that provides guidelines on how companies should recognize and report revenue from contracts with customers. It aims to create a consistent, transparent approach by focusing on the transfer of goods or services to customers in amounts they expect to receive. The standard outlines a five-step process: identify the contract, identify performance obligations, determine transaction prices, allocate these prices to obligations, and recognize revenue when that obligation is fulfilled. This ensures that revenue is recorded accurately and comparably across different companies and industries, reflecting the true economic activity behind sales.