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IFRS 15 - How do the customer account for the contract?

Hi! This might be a stupid question, but... IFRS 15 tells you how to account for revenue from contracts. So what about the customer side of the contract? Should they expense like a "mirror" of the revenue side? They just look at IFRS 15, and do the opposite sort of (expense it instead of revenue)?

If this is how it is, it would also be nice if anyone have a paragraph reference in IFRS 15 where this comes forth

Thanks :=)

asked Apr 22 in IFRS 15 - Revenue from Contracts with Customers by DoctorDumbledore Level 1 Member (1,200 points)

1 Answer

0 votes
It depends on the situation

If the customer have paid prior to the contract then he will record as Asset and as he uses the services he will expense out.

If the payment is not prepaid then he will record as Expense directly and raise payable account untill he pay liability.
answered Apr 22 by MHAGIG Level 2 Member (4,250 points)