[Verse 1] When the price keeps changing in your deal Variable consideration makes it real Estimate your best guess from the start Constraint the revenue, play it smart Only when it's highly probable to stay Recognition comes another day [Chorus] IFRS fifteen makes it clear and bright Variable, Modify, Principal's right Bill and hold when control has passed License the IP to make it last Complex scenarios, step by step Revenue recognition you can't forget [Verse 2] Contract modifications change the game New goods or services aren't the same If distinct and priced at standalone rate Separate contract you must create But if not distinct or not at price Modify existing, roll the dice [Chorus] IFRS fifteen makes it clear and bright Variable, Modify, Principal's right Bill and hold when control has passed License the IP to make it last Complex scenarios, step by step Revenue recognition you can't forget [Verse 3] Are you principal or just an agent here The question that accountants always fear Control the good before you pass it on Principal treatment, your revenue's strong But if you're just arranging for another Agent fees are all you can recover [Bridge] Bill and hold seems simple but beware Customer must want it, you must care Storage space identified and real Reason for arrangement sealed the deal Control transfers though you hold the goods Revenue timing's understood [Verse 4] Licensing intellectual property rights Functional or symbolic, different sights If functional, recognize at point in time Symbolic needs a pattern, paradigm Over time as customer receives The benefit your license achieves [Chorus] IFRS fifteen makes it clear and bright Variable, Modify, Principal's right Bill and hold when control has passed License the IP to make it last Complex scenarios, step by step Revenue recognition you can't forget [Outro] From estimates to modifications too Principal agent, what will you do Bill and hold and licensing deals IFRS fifteen shows what's real
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