IFRS 15Chapter 7Lesson 2
Step 5 (2): measuring progress
Step 1 of 9Learning objectives
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When an obligation is satisfied over time, revenue follows progress. The entity uses a single method per obligation (outputs or inputs), excludes costs that do not depict its performance (unexpected waste, uninstalled goods), updates progress at each reporting date and, if the outcome cannot yet be measured, limits revenue to the costs it expects to recover.
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Learning objectives
- Choose a single method for measuring progress (outputs or inputs) that faithfully depicts performance.
- Calculate progress on a cost-incurred basis and the revenue of the period, including after a revision of estimates.
- Exclude inputs that do not depict performance (unexpected waste, uninstalled goods) and apply the recoverable-cost limit.
- Record the revenue and costs of the period based on progress.