Under IFRS, sales contracts with multiple deliverables should be split according to their relative fair values if possible, and accounted for accordingly.

Question

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Under IFRS 15, revenue from contracts with customers, if a contract has multiple deliverables they should be split and accounted for separately if they are distinct. Distinct means the customer can benefit from the item on its own or together with readily available resources and the item is separately identifiable from other items in the contract. The relative fair value of each deliverable should be determined and allocated to the total consideration in the contract.

Under IFRS, Sales Contracts with Multiple Deliverables Should Be Split