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Version date: 10 February 2017 - onwards

Sale of goods (paras. 14-19)

Superseded by IFRS 15: Revenue from Contracts with Customers for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted.

14Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

(a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

(b) the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow to the entity; and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.