What it means
Cash receipt and revenue are different
Receiving payment does not automatically mean that the full amount is revenue at that moment. Under IFRS 15, revenue reflects the transfer of promised goods or services and the consideration associated with satisfied performance obligations.
Contracts and records
A business identifies the contract, obligations, transaction price and allocation before applying the relevant timing rules. Subscriptions, bundles, advance payments and milestone billing can create timing differences between invoicing, cash collection and revenue. Crypto settlement adds valuation and asset-accounting questions that are separate from the basic revenue principle.
Related concepts
In practice
A concrete example
An annual service paid upfront may require recognition over the service period when the applicable framework and contract facts support that treatment.
Technical notes & boundaries
The source describes IFRS 15. The correct treatment depends on facts and the reporting framework; neither a payment notification nor this definition provides accounting advice.
Go to the source.
Original references used for this definition. Product details and standards can change.