Chapter 1 — Overview
Chapter 1 — Overview
1.1 Background
In May 2014, the FASB and IASB issued their final standard on
revenue from contracts with customers. The standard, issued as ASU 2014-09 by the FASB
and as IFRS 15 by the IASB, outlines a single comprehensive model for
entities to use in accounting for revenue from contracts with customers and
supersedes most legacy revenue recognition guidance, including industry-specific
guidance.
The goals of the revenue recognition project were to clarify and
converge the revenue recognition principles under U.S. GAAP and IFRS Accounting
Standards and to develop guidance that would streamline and enhance revenue
recognition requirements while also providing “a more robust framework for
addressing revenue issues.”1 The boards believe that the standard will improve the consistency of
requirements, comparability of revenue recognition practices, and usefulness of
disclosures.
The timeline below provides an overview of the key events in the development of the
final revenue recognition standard.
1.1.1 Revenue Project — Timeline
2
For public business entities, the revenue
standard became effective for annual reporting periods
(including interim reporting periods within those periods)
beginning after December 15, 2017. As a result,
calendar-year-end companies were required to apply the revenue
standard in 2018.
3
For entities that are not public business
entities, the revenue standard became effective for annual
reporting periods beginning after December 15, 2018, and for
interim reporting periods within annual reporting periods
beginning after December 15, 2019. However, in June 2020, the
FASB issued ASU 2020-05, which permitted those nonpublic
entities that had not yet issued their financial statements or
made financial statements available for issuance as of June 3,
2020, to adopt the revenue standard for annual reporting periods
beginning after December 15, 2019, and for interim reporting
periods within annual reporting periods beginning after December
15, 2020.
The boards’ 2008 discussion paper on revenue recognition represented a
significant milestone in the project. The project picked up momentum with the
issuance of the June 2010 ED, for which the boards received nearly 1,000 comment
letters. Then, in November 2011, the boards issued their revised ED after
conducting extensive outreach and redeliberating almost every aspect of the
original proposal. After further outreach and deliberations, the boards modified
the proposal and issued the final standard in May 2014.
The following month, a joint FASB/IASB TRG was created to
research standard-related implementation issues and help the boards resolve
questions that could give rise to diversity in practice. Throughout the
remainder of 2014 and 2015, the full TRG met and discussed topics that
preparers, auditors, and industries had elevated to the TRG’s attention. In
addition, the FASB-only version of the TRG met in April 2016 and November 2016.
With the help of input from the TRG, the boards issued additional revenue
guidance and interpretations (see Chapter 18 for more information). Both the
FASB and the IASB have indicated that no future TRG meetings are scheduled and
that the TRG will not meet unless additional significant, pervasive issues are
identified. However, the FASB has indicated that stakeholders may submit
inquiries through its technical inquiry process.4
In January 2016, the IASB issued an announcement that it had
completed its decision-making process related to clarifying the revenue standard
and that it did not plan to schedule any additional TRG meetings for IFRS
constituents. However, the FASB continued to address implementation issues. As
noted above, two FASB-only TRG meetings were held, one in April 2016 and the
other in November 2016. At the November 2016 FASB-only TRG meeting, the FASB
announced that no additional TRG meetings were scheduled. However, the FASB
encouraged stakeholders to continue submitting implementation questions either
directly to the TRG or through the FASB’s technical inquiry process. While it
acknowledged that it would be open to scheduling future TRG meetings to discuss
implementation issues that are significant and far-reaching, the FASB noted that
it would be judicious in selecting topics, partly because the Board did not want
to disrupt the implementation activities of entities that were adopting the
standard as of January 1, 2017. As of the issuance date of this publication,
there have been no additional TRG meetings since November 2016.
In August 2017, the SEC issued SAB
116, which effectively rescinded the SEC’s legacy revenue
recognition guidance in SAB Topic 13, Securities Exchange Act Release No. 23507,
and Accounting and Auditing Enforcement Release No. 108. As part of this update,
the SEC’s legacy guidance on bill-and-hold arrangements is no longer applicable
upon the adoption of ASC 606 (i.e., entities should look to the guidance in the
revenue standard to determine the appropriate accounting for bill-and-hold
arrangements). Refer to Section 8.6.9 for additional information on bill-and-hold
arrangements. In addition, SAB 116 notes that SAB Topic 8 will no longer be
applicable for retail companies. Further, SAB 116 modified the miscellaneous
disclosure guidance in SAB Topic 11.A. For additional information about SAB 116
and other relevant SEC activities, refer to Chapter 18.
Footnotes
1
Quoted from ASU 2014-09.
2
For public business entities, the revenue
standard became effective for annual reporting periods
(including interim reporting periods within those periods)
beginning after December 15, 2017. As a result,
calendar-year-end companies were required to apply the revenue
standard in 2018.
3
For entities that are not public business
entities, the revenue standard became effective for annual
reporting periods beginning after December 15, 2018, and for
interim reporting periods within annual reporting periods
beginning after December 15, 2019. However, in June 2020, the
FASB issued ASU 2020-05, which permitted those nonpublic
entities that had not yet issued their financial statements or
made financial statements available for issuance as of June 3,
2020, to adopt the revenue standard for annual reporting periods
beginning after December 15, 2019, and for interim reporting
periods within annual reporting periods beginning after December
15, 2020.
1.2 Key Provisions of the Revenue Standard
The core principle and application of the standard’s revenue model can be
depicted as follows:
The core principle was established by the FASB and IASB and is the underpinning of the entire revenue
framework. In this principle, the boards identified and answered the two most fundamental questions
concerning revenue:
- When?
- That is, when may an entity recognize revenue?
- Answer — When the entity satisfies its obligations under a contract by transferring goods or services to its customer. That is, when the entity performs, it should recognize revenue.
- How much?
- That is, how much revenue may an entity recognize?
- Answer — The amount to which the entity expects to be entitled to under the contract (i.e., an expected amount, so estimates may be required). The boards intentionally used the wording “be entitled” rather than “receive” or “collect” to distinguish collectibility risk from other uncertainties that may occur under the contract (see Chapters 4 and 6 for further discussion).
The core principle is supported by five steps (following a scope decision) in
the standard’s revenue framework, which are outlined in the following chart:
1.3 Scope (Chapter 3 of the Roadmap)
The standard’s revenue guidance applies to all contracts
with customers as defined
by the standard (see Chapter 2 for
definitions of terms included in the standard’s
glossary) except those that are within the scope
of other topics in the Codification. The guidance
does not apply to contracts within the scope of
ASC 842 (leases) and ASC 944 (financial services —
insurance); contractual rights or obligations
within the scope of ASC 310, ASC 320, ASC 321, ASC
323, ASC 325, ASC 405, ASC 470, ASC 815, ASC 825,
and ASC 860 (primarily various types of financial
instruments); contracts within the scope of ASC
460 (guarantees other than product or service
warranties); and ASC 845 (nonmonetary exchanges
between entities in the same line of business to
facilitate a sale to another party).
Certain provisions of the standard’s revenue guidance also apply to transfers of
nonfinancial assets, including in-substance
nonfinancial assets that are not an output of an
entity’s ordinary activities (e.g., sales to
noncustomers of (1) property, plant, and
equipment; (2) real estate; or (3) intangible
assets). Such provisions include guidance on
recognition (including determining the existence
of a contract and control principles) and
measurement. See Chapter 17.
1.4 Step 1: Identify the Contract With the Customer (Chapter 4 of the Roadmap)
Step 1 requires an entity to identify the contract with the customer. A contract does not have to be
written to meet the criteria for revenue recognition; however, it does need to create enforceable rights
and obligations.
A contract can be written, verbal, or implied; however, the guidance applies to
a contract only if all of the following criteria are met:
-
“The parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations.”
-
“The entity can identify each party’s rights regarding the goods or services to be transferred.”
-
“The entity can identify the payment terms for the goods or services to be transferred.”
-
“The contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract).”
-
“It is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.”
Stakeholders should be aware that under U.S. GAAP, the “probable” threshold for
collectibility as used in the criterion above for identifying the contract with the
customer is defined differently from how it is defined under IFRS Accounting
Standards. In U.S. GAAP, ASC 450-20 (formerly FASB Statement 5) states that the term
“probable” refers to a “future event or events [that] are likely to occur.” In IFRS
Accounting Standards, “probable” means “more likely than not.” Because “more likely
than not” under U.S. GAAP is a lower threshold than “probable,” an entity may
encounter differences between U.S. GAAP and IFRS Accounting Standards in determining
whether a contract exists. For more discussion on differences between U.S. GAAP and
IFRS Accounting Standards, refer to Appendix A.
If a contract does not meet these criteria at contract inception, an entity must continue to reassess
the criteria to determine whether they are subsequently met. If the above criteria are not met in a
contract with a customer, the entity is precluded from recognizing revenue under the contract until the
consideration received is nonrefundable and one or more of the following events have occurred:
- All of the performance obligations in the contract have been satisfied, and substantially all of the promised consideration has been received.
- The contract has been terminated or canceled.
- The entity (1) has transferred control of the goods or services to which the consideration that has been received is related, (2) has stopped transferring goods or services, and (3) has no obligation to transfer additional goods or services.
If none of the events above have occurred, any consideration received would be recognized as a liability.
1.5 Step 2: Identify the Performance Obligations in the Contract (Chapter 5 of the Roadmap)
Step 2 requires an entity to
identify the distinct goods or services promised in the contract. Distinct
goods and services should be accounted for as separate units of account (this
process is sometimes called “unbundling”). These distinct goods or services are
referred to as “performance obligations.”
The guidance requires an entity to evaluate the promised “goods or services” in
a contract to determine each performance obligation (i.e., the unit of account). A
performance obligation is a promise to transfer either of the following to a
customer:
-
“A good or service (or a bundle of goods or services) that is distinct.”
-
“A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.”
The guidance addresses the identification of distinct performance obligations in
contracts involving the following:
-
Warranties (see Section 5.5).
-
Customer options to acquire additional free or discounted goods or services (see Chapter 11).
-
Nonrefundable up-front fees (see Section 5.6).
The decision tree below illustrates the process for identifying performance
obligations in a contract.
A promised good or service is distinct (and therefore a performance obligation) if both of the following
criteria are met:
- Capable of being distinct — “The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer.”
- Distinct within the context of the contract — “The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract.”
The standard defines a readily available resource as “a good or service that is
sold separately (by the entity or another entity) or a resource that the customer
has already obtained from the entity.” If an entity regularly sells a good or
service on a stand-alone basis, the customer can benefit from that good or service
on its own and, therefore, the first criterion above is met.
The objective of the second criterion above is to determine whether the nature
of the promise is to transfer each good or service individually or, instead, to
transfer a combined item or items to which the promised goods or services are
inputs. The guidance provides the following indicators that two or more promises are
not separately identifiable:
-
“The entity provides a significant service of integrating goods or services with other goods or services promised in the contract . . . . In other words, the entity is using the goods or services as inputs to produce or deliver the combined output or outputs specified by the customer.”
-
“One or more of the goods or services significantly modifies or customizes, or are significantly modified or customized by, one or more of the other goods or services promised in the contract.”
-
“The goods or services are highly interdependent or highly interrelated. In other words, each of the goods or services is significantly affected by one or more of the other goods or services in the contract. For example, in some cases, two or more goods or services are significantly affected by each other because the entity would not be able to fulfill its promise by transferring each of the goods or services independently.”
Entities may need to use significant judgment when determining whether the goods
or services in a contract are significantly integrated, are highly interdependent or
highly interrelated, or significantly modify or customize one another.
1.6 Step 3: Determine the Transaction Price (Chapter 6 of the Roadmap)
Step 3 requires an entity to determine the transaction price for the contract, which is the amount of
consideration to which the entity expects to be entitled in exchange for the
promised goods or services in the contract. The transaction price can be a fixed
amount or can vary because of “discounts, rebates, refunds, credits, price
concessions, incentives, performance bonuses, penalties, or other similar items.” An
entity must consider the following when determining the transaction price:
-
Variable consideration (see Section 6.3) — When the transaction price includes a variable amount, an entity is generally required to estimate the variable consideration by using either an “expected value” (probability-weighted) approach or a “most likely amount” approach, whichever is more predictive of the amount to which the entity will be entitled (subject to the “constraint” discussed below). However, estimation may not be required in all circumstances. For example, variable consideration may not require estimation if it could be allocated entirely to a distinct good or service when certain criteria are met (see Section 1.7).
-
Significant financing components (see Section 6.4) — Adjustments for the time value of money are required if the contract includes a “significant financing component” (as defined by the guidance).
-
Noncash consideration (see Section 6.5) — To the extent that a contract includes noncash consideration, an entity is required to measure that consideration at fair value at contract inception.
-
Consideration payable to a customer (see Section 6.6) — The revenue standard requires consideration payable to the customer to be reflected as an adjustment to the transaction price unless the consideration is payment for a distinct good or service (as defined by the standard).
Some or all of an estimate of variable consideration is only
included in the transaction price to the “extent that it is probable[5] that a significant reversal in the amount of cumulative revenue recognized
will not occur when the uncertainty associated with the variable consideration is
subsequently resolved” (this concept is commonly referred to as the “constraint”).
The guidance requires entities to perform a qualitative assessment that takes into
account both the likelihood and the magnitude of a potential revenue reversal and
provides factors that could indicate that an estimate of variable consideration is
subject to significant reversal (e.g., susceptibility to factors outside the
entity’s influence, a long period before uncertainty is resolved, limited experience
with similar types of contracts, practices of providing concessions, or a broad
range of possible consideration amounts). This estimate would be updated in each
reporting period to reflect changes in facts and circumstances. In addition, the
constraint does not apply to sales- or usage-based royalties derived from the
licensing of intellectual property (IP); rather, consideration from such royalties
is only recognized as revenue at the later of when the performance obligation is
satisfied or when the uncertainty is resolved (e.g., when subsequent sales or usage
occurs). See Section
12.7 for further discussion of the sales- or usage-based royalty
exception for licenses of IP.
Entities will need to exercise significant judgment when determining
the amount of variable consideration to include in the transaction price.
Consequently, they could find it challenging to consistently apply the standard’s
requirements throughout their organizations.
Footnotes
[5]
In IFRS 15, the IASB uses the term “highly probable,” which
has the same meaning as the FASB’s “probable” as defined in ASC 450.
1.7 Step 4: Allocate the Transaction Price to the Performance Obligations in the Contract (Chapter 7 of the Roadmap)
Step 4 requires an entity to allocate the transaction price determined in step 3 to the performance
obligations identified in step 2 by using the following approaches:
- Allocating the transaction price to the performance obligations on the basis of the stand-alone selling price (see Section 7.2).
- Allocating a discount to one or more, but not all, of the performance obligations in the contract (see Section 7.4).
- Allocating variable consideration to one or more, but not all, of the distinct goods or services in the contract (see Section 7.5).
- Allocating changes in the transaction price to the performance obligations in the contract (see Section 7.6).
Under the guidance, when a contract contains more than one performance
obligation, an entity would generally allocate the transaction price
to each performance obligation on a relative stand-alone selling
price basis. The guidance states that the “best evidence of a
standalone selling price is the observable price of a good or
service when the entity sells that good or service separately in
similar circumstances and to similar customers.” If the good or
service is not sold separately, an entity must estimate the
stand-alone selling price by using an approach that maximizes the
use of observable inputs. Acceptable estimation methods include, but
are not limited to, (1) adjusted market assessment, (2) expected
cost plus a margin, and (3) a residual approach (when the
stand-alone selling price is not directly observable and is either
highly variable or uncertain). An entity would determine the
stand-alone selling price for a good or service at contract
inception and would not reassess or update its determination of the
stand-alone selling price thereafter unless the contract is
modified.
The guidance indicates that if certain conditions are met, there are limited
exceptions to this general allocation requirement. When those conditions are met, a
discount or variable consideration must be allocated to one or more, but not all, of
the performance obligations in a contract.
Changes in the transaction price (e.g., changes in an estimate of variable consideration) after contract
inception would be allocated to all performance obligations in the contract on the same basis (unless
the terms of the contract meet certain criteria that allow for allocation of variable
consideration to one or more, but not all, of the performance obligations).
The guidance allows entities to use a residual approach in allocating contract
consideration, but only when the stand-alone selling price of a good
or service is not directly observable and is either “highly variable
or uncertain.” An entity will need to use judgment in determining
whether these criteria are met.
1.8 Step 5: Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation (Chapter 8 of the Roadmap)
Step 5 specifies how an entity should determine when to recognize revenue in relation to a
performance obligation and requires consideration of the following:
- Recognition of revenue when (or as) control of the good or service is passed to the customer (see Sections 8.1 and 8.2).
- Criteria for satisfying performance obligations and recognizing revenue over time (see Section 8.4).
- Measurement of progress in satisfying performance obligations to determine the pattern of when to recognize revenue over time (see Section 8.5).
- Indicators of when performance obligations are satisfied and when to recognize revenue at a point in time (see Section 8.6).
Under the guidance, a performance obligation is satisfied (and the related
revenue recognized) when “control” of the underlying goods or services (the
“assets”) related to the performance obligation is transferred to the customer. The
guidance defines “control” as “the ability to direct the use of, and obtain
substantially all of the remaining benefits from, the asset.” An entity must first
determine whether control of a good or service is transferred over time. If so, the
related revenue is recognized over time as the good or service is transferred to the
customer. If not, control of the good or service is transferred at a point in
time.
Control of a good or service (and therefore satisfaction of the related performance obligation) is
transferred over time when at least one of the following criteria is met:
- “The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs.”
- “The entity’s performance creates or enhances an asset . . . that the customer controls as the asset is created or enhanced.”
- “The entity’s performance does not create an asset with an alternative use to the entity . . . and the entity has an enforceable right to payment for performance completed to date.”
If a performance obligation is satisfied over time, an entity recognizes revenue
by measuring progress toward satisfying the performance obligation in a manner that
faithfully depicts the transfer of goods or services to the customer. The revenue
standard provides specific guidance on measuring progress toward completion,
including the use and application of output and input methods.
The guidance notes that in certain circumstances, an entity may not be able to
reasonably measure progress toward complete satisfaction of a performance
obligation. In such circumstances, the entity would be required to recognize revenue
to the extent of costs incurred (i.e., at a zero profit margin) if the entity
expects to recover such costs. The guidance does not permit entities to use a
completed-contract method.
If a performance obligation is not satisfied over time, it is deemed satisfied
at a point in time. Under the guidance, entities would consider the following
indicators in evaluating the point at which control of an asset has been transferred
to a customer:
-
“The entity has a present right to payment for the asset.”
-
“The customer has legal title to the asset.”
-
“The entity has transferred physical possession of the asset.”
-
“The customer has the significant risks and rewards of ownership of the asset.”
-
“The customer has accepted the asset.”
In addition, the implementation guidance includes further discussion on the following topics related to
when control of an asset has been transferred to a customer:
- Customer acceptance terms (Section 8.6.7) — Control has been transferred to the entity’s customer if the entity can objectively determine that the good or service meets agreed-upon specifications. If the entity is unable to make that objective determination, the entity must receive the customer’s acceptance before concluding that control has been transferred.
- Consignment arrangements (Section 8.6.8) — Control typically passes to another party (a dealer or distributor) when (1) that party sells the product to a customer of its own or (2) a specified period expires.
- Bill-and-hold arrangements (Section 8.6.9) — The entity should evaluate whether control has passed to its customer (the revenue standard provides specific criteria that need to be met for the entity to conclude that control has been transferred to the customer). Further, the entity is required to consider whether there are additional performance obligations after control is transferred to the customer (e.g., an obligation to provide custodial services); if such performance obligations exist, the entity would allocate a portion of the transaction price to those performance obligations.
- Repurchase agreements (Section 8.7) — If the entity has an obligation (forward) or right (call option) to repurchase the asset (or in some instances when the customer has rights to put the asset back to the entity), the customer does not obtain control, and the transaction is accounted for as a lease (ASC 842) or a financing arrangement.
1.9 Beyond the Core Model
The revenue standard also affects other related accounting topics and contains
disclosure requirements, as discussed in Sections 1.9.1 and 1.9.2.
1.9.1 Other Related Accounting Topics
Additional accounting topics affected by the revenue standard are summarized in
the table below.
Topic | Roadmap Chapter |
---|---|
Combination of contracts There are certain circumstances in which multiple legal-form contracts would be
accounted for as though they were one contract for
accounting purposes. The revenue standard provides
guidance on when contracts should be combined. | |
Rights of return The obligation of a seller to “stand ready” to accept a return is not a performance
obligation. However, when a seller stands ready to accept a return, it does not recognize
revenue for goods expected to be returned. Rather, it recognizes a refund liability for
consideration paid by a buyer to which the seller does not expect to be entitled, together
with a corresponding asset to recover the product from the buyer. | |
Customers’ unexercised rights An entity recognizes “breakage” (i.e., a customer’s unexercised rights) in a manner
consistent with the pattern of rights exercised by the customer if the entity expects
to be entitled to a breakage amount; otherwise, the entity defers recognition until the
probability that the customer will exercise its rights is remote. | |
Contract modifications The revenue standard provides a general framework of accounting for contract
modifications, including guidance on when modifications
are accounted for as a separate contract and how changes
should be recorded. | |
Principal-versus-agent considerations The revenue standard includes control-based guidance on determining whether the
promise an entity has made to a customer is to provide
the good or service or to arrange for another party to
fulfill the promise. | |
Licensing The revenue standard’s guidance on licensing distinguishes between two types of
licenses (right to use and right to access). The timing
of revenue recognition is different for each. | |
Costs of obtaining or fulfilling a contract The revenue standard includes guidance on how to account for costs related to a
contract, distinguishing between costs of obtaining a
contract and costs of fulfilling a contract. For
situations in which the application of this guidance
results in the capitalization of costs, the revenue
standard provides additional guidance on (1) determining
an appropriate amortization period and (2) impairment
considerations. | |
Presentation The revenue standard includes guidance on the presentation of contract assets,
contract liabilities, and receivables arising from
contracts with customers. | |
Nonpublic-entity requirements The revenue standard provides nonpublic entities with disclosure practical
expedients. | |
Nonfinancial assets ASU 2014-09 (as amended by ASU 2017-05) provides guidance on the recognition and
measurement of transfers of nonfinancial assets to
parties that are not customers (codified in ASC
610-20). |
1.9.2 Required Disclosures (Chapter 15 of the Roadmap)
The revenue standard requires entities to disclose both quantitative and
qualitative information that enables “users of financial statements to
understand the nature, amount, timing, and uncertainty of revenue and cash flows
arising from contracts with customers.” The standard’s disclosure requirements
include the following (there are certain exceptions for nonpublic entities; see
Chapter 16 for a summary of these
exceptions):
-
Presentation or disclosure of revenue from contracts with customers and any impairment losses recognized separately from other sources of revenue or impairment losses from other contracts (e.g., leases).
-
A disaggregation of revenue to “depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors” (the standard also provides implementation guidance).
-
Information about (1) contract assets and contract liabilities (including changes in those balances), (2) the amount of revenue recognized in the current period that was previously recognized as a contract liability, and (3) the amount of revenue recognized in the current period that is related to performance obligations satisfied in prior periods.
-
Information about performance obligations (e.g., types of goods or services, significant payment terms, typical timing of satisfying obligations, and other provisions).
-
Information about an entity’s transaction price allocated to the remaining performance obligations, including (in certain circumstances) a quantitative disclosure of the “aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied)” and when the entity expects to recognize that amount as revenue.
-
A description of the significant judgments, and changes in those judgments, that affect the amount and timing of revenue recognition (including information about the timing of satisfaction of performance obligations, the determination of the transaction price, and the allocation of the transaction price to performance obligations).
-
Information about an entity’s accounting for costs to obtain or fulfill a contract (including account balances and amortization methods).
-
Information about policy decisions (i.e., whether the entity used the practical expedients for significant financing components and contract costs allowed by the guidance).
The guidance requires entities, on an interim basis, to disclose information
required under ASC 270 as well as to provide the disclosures (described above)
about (1) the disaggregation of revenue, (2) contract asset and contract
liability balances and significant changes in those balances since the previous
period-end, and (3) the transaction price allocated to the remaining performance
obligations.
IFRS 15 only requires entities to disclose the disaggregation of revenue in
addition to the information required under IAS 34 for interim periods. For a
summary of differences between U.S. GAAP and IFRS Accounting Standards, refer to
Appendix A.