CERTYNEX IFRS ACADEMY

Costs to fulfil a contract that are not within the scope of any other standard are recognised as an asset under IFRS 15. Which conditions must be met?

The costs relate directly to an existing contract or to a specifically identified anticipated contract.

The costs were paid in cash before the reporting date.

The costs generate or enhance resources that will be used to satisfy future performance obligations.

The contract term exceeds one year.

The entity expects to recover the costs.