This free, guided checker walks your finance team through the key decision points for IFRS 15 Principal versus Agent 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.
For payment platforms the unit may be merchant payment processing, device provision, or a right to a third-party service rather than the underlying merchant sale.
Define the specified good or service before assessing control.
Official guidance: IFRS issued standards
On-balance-sheet client money does not automatically make the entity principal for merchant sales; assess control of the specified good or service independently.
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Official guidance: IFRS issued standards
Control may arise through obtaining the good, directing another party to perform, or combining inputs into a customer output per IFRS 15.B34A.
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Official guidance: IFRS issued standards
Primary responsibility for acceptability, inventory risk before transfer, and pricing discretion are paragraph 38 indicators supporting rather than replacing the control test.
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Official guidance: IFRS issued standards
Exposure to customer credit risk on gross flows is a principal indicator when combined with control of the specified good or service.
Present revenue gross if the control conclusion remains supported. Present revenue gross if control before transfer is still demonstrated.
Official guidance: IFRS issued standards
Payment processors earning transaction fees without merchant inventory risk or pricing discretion are typically agents presenting net fee revenue.
The indicators conflict and require a specified-good control memo.
Official guidance: IFRS issued standards
Multi-service bundles may require separate principal or agent conclusions for merchant processing versus device sales or setup services.
Apply separate gross or net presentation by specified good or service. Present the fee or commission as net revenue if the entity is an agent.
Official guidance: IFRS issued standards
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