This free, guided checker walks your finance team through the key decision points for IFRS 15 Contract Modification Assessment. Answer a few questions to see the likely treatment and the evidence to document.
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
This tool is a high-level IFRS screening aid for general information only and is not accounting, audit or legal advice. Conclusions require entity-specific evidence and judgement - confirm the treatment with your advisor.
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
A change in enforceable rights and payment terms is a modification; a contract termination and new contract is not a modification under IFRS 15.18.
Continue current revenue recognition without modification accounting.
Official guidance: IFRS issued standards
Scope increases such as additional devices, users, or service tiers require separate-contract testing before cumulative catch-up accounting.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IFRS issued standards
Distinct promises can be sold separately and are separately identifiable in the contract context, including when the customer could purchase them without the original bundle.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IFRS issued standards
A separate contract exists when added scope is distinct and the price increase reflects SSP adjusted for contract-specific circumstances per IFRS 15.19.
Account for the added scope as a separate contract without adjusting prior revenue.
Official guidance: IFRS issued standards
Price-only changes on the same remaining promises may be allocated on the same basis as the original contract without remeasuring progress.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IFRS issued standards
Prospective price allocation applies when scope is unchanged and only consideration changes for unsatisfied promises.
Adjust allocated transaction price prospectively without changing prior revenue.
Official guidance: IFRS issued standards
When scope or price changes affect remaining over-time obligations, the entity remeasures progress and may apply cumulative catch-up adjustment per IFRS 15.21.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IFRS issued standards
Cumulative catch-up adjusts revenue to date for revised transaction price and measure of progress; prospective treatment applies when remaining goods are distinct.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IFRS issued standards
Reallocate modified consideration using relative standalone selling prices for unsatisfied promises before measuring the cumulative catch-up adjustment.
Complete reallocation before recognizing modification adjustment.
Official guidance: IFRS issued standards
Modification accounting may change billed amounts, unbilled revenue, and refund liabilities requiring balance-sheet reconciliation.
Reconcile contract balances before finalizing modification entries.
Official guidance: IFRS issued standards
Disclose significant contract modifications, allocation methods, and effects on revenue and contract balances when material.
Record cumulative catch-up or prospective modification and publish required disclosures. Complete disclosure pack before recognizing modification adjustment.
Official guidance: IFRS issued standards
Send us your situation and one of our senior CPAs will review it with you - fixed fee, no surprises.
Contact Us