[Clarifications to IFRS 15 issued in April 2016 amended the application guidance in paragraphs B34-B38 and, as a consequence, amended paragraph BC383. The objective of amending the application guidance in paragraphs B34-B38 is to (a) provide a better framework to be applied when assessing whether an entity is a principal or an agent; (b) clarify the application of the control principle to intangible goods and services; and (c) clarify the role of the indicators in paragraph B37 when applying the control principle. Paragraphs BC379-BC385 should therefore be read together with paragraphs BC385A-BC385Z, which explain the boards' considerations for amending the application guidance.]
BC379 Previous revenue Standards required an entity to assess whether it was acting as a principal or an agent when goods or services were transferred to a customer. That assessment was necessary to determine whether an entity should recognise revenue for the gross amount of customer conside
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