Trade receivables at the transaction price

Learning objectives

• Determine when a trade receivable is initially measured at the IFRS 15 transaction price (no significant financing component, or practical expedient).L2
• Record the journal entries for trade receivables at the transaction price and measure their effect on the financial position, profit or loss and other comprehensive income.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.

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

2 questions

• Sigma SA delivers goods to a customer with payment in 30 days. The trade receivable has no significant financing component. The transaction price under IFRS 15 is 36,000; the fair value of the receivable, estimated by discounting that amount, would be 35,400. At what amount does Sigma initially measure the receivable?L2
• Upsilon SA delivers goods to a customer and grants it 30 days to pay. The trade receivable has no significant financing component. The transaction price under IFRS 15 is {transaction_price}. Case assumption: revenue is recognised on delivery. Record the entry for the receivable and the revenue.L2