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IFRS 15 Revenue Recognition


The reporting entity has built a complex piece of robotic manufacturing equipment for a customer.

The machine is built to specifications from the customer. These specifications include what functions the equipment should be able to perform, and performance levels to achieve, in a wide range of circumstances.

The reporting entity has extensively tested the equipment and believes it meets all the specifications. Nevertheless, according to the contract, the customer will not formally accept the asset until six months after delivery. If, before that time, it turns out that the equipment does not function completely as specified, the entity must make repairs or adjustments.

80% of the consideration is paid upon or before installation, the remaining is paid when the customer accepts the asset.

Could you please help me how we can describe and account for it under IFRS 15?

asked Oct 26 in General IFRS Discussion by Muhammad

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