Receivables and contract assets of IFRS 15

Learning objectives

• Explain how IFRS 15 (transaction price, financing component, contract asset) determines the initial measurement and the scope of the simplified approach for receivables.L2

Normative references

• IFRS 9 §5.1.3Notwithstanding para. 5.1.1, trade receivables that do not contain a significant financing component under IFRS 15 (or for which the practical expedient in para. 63 of IFRS 15 is applied) are measured initially at the amount determined in accordance with IFRS 15. This wording results from Annual Improvements Volume 11 (annual periods beginning on or after 1 January 2026, earlier application permitted), which also amended Appendix A.
• IFRS 9 §5.5.15Simplified approach: the loss allowance is always measured at an amount equal to lifetime expected credit losses, without stages, for trade receivables and contract assets that do not contain a significant financing component (including when the IFRS 15 practical expedient is applied); for those that contain a significant financing component and for lease receivables (IFRS 16), the entity chooses this approach as its accounting policy, applied separately to each type of asset; this paragraph overrides paras. 5.5.3 and 5.5.5.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Vega SA has performed services invoiced at 120,000 (transaction price under IFRS 15), with payment in 45 days. The trade receivable has no significant financing component. What are the applicable initial measurement of the receivable and impairment approach?L2