Methods for Measurement of Progress of Performance Obligation under IFRS 15

Abstract The article focuses on the recognition of revenues when the transfer of goods and services under the contract and the performance obligation accordingly, covers more than one reporting period. Performance obligation is satisfied at some point in time or over time. According to IFRS 15, when the performance obligation is satisfied over time, revenue should be recognized based on the percentage of performance of the obligation. The article analyzes the methods permitted by the Standard for measuring the progress of performance of contractual obligation. These are the Output methods and the Input methods. When the performance obligation is satisfied over time, the calculation of the volume of completed work via the output methods and the input method and accordingly the determination of revenues are discussed by situational examples.