BC47 The boards decided to include the requirements in paragraphs 14-16 of IFRS 15 in response to questions from some respondents about how an entity should account for its rights and obligations when a contract does not meet the criteria in paragraph 9 of IFRS 15. Those respondents were concerned that if a contract did not meet the criteria in paragraph 9 of IFRS 15, in the absence of specific requirements, an entity would seek alternative guidance and potentially apply the revenue recognition model by analogy, which might not result in appropriate accounting. Consequently, the boards specified that in cases in which the contract does not meet the criteria in paragraph 9 of IFRS 15, an entity should recognise the consideration received as revenue only when one of the events in paragraph 15 of IFRS 15 has occurred or the entity reassesses the criteria in paragraph 9 of IFRS 15 and the contract subsequently meets those criteria.
BC48 The requirements in paragraph 15 are consistent with
…