BC69 IFRS 15 specifies the accounting required for an individual contract. Many entities have a large number of contracts and as a result some respondents noted practical challenges in applying the model on a contract-by-contract basis. These respondents questioned whether it would always be necessary to apply IFRS 15 on a contract-by-contract basis. The boards observed that the way in which an entity applies the model to its contracts is not a matter for which the boards should specify requirements. Nonetheless, in the light of the feedback, the boards decided to include a practical expedient in paragraph 4 of IFRS 15 to acknowledge that a practical way to apply IFRS 15 to some contracts may be to use a 'portfolio approach'. The boards acknowledged that an entity would need to apply judgement in selecting the size and composition of the portfolio in such a way that the entity reasonably expects that application of the revenue recognition model to the portfolio would not differ materia
…Version date: 26 February 2020 - onwards
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