BC510 The main changes from the proposals in the 2011 Exposure Draft are as follows:

(a) IFRS 15 includes additional requirements related to identifying a contract with a customer. Specifically, IFRS 15 includes an additional criterion that must be met before an entity can apply the requirements in IFRS 15 to a contract. This criterion in paragraph 9(e) of IFRS 15 requires an entity to conclude that it is probable that a customer will pay the consideration to which the entity will be entitled by assessing the customer's ability and intention to pay. In addition, IFRS 15 provides guidance for accounting for contracts that do not meet the specified criteria and thus cannot apply IFRS 15.

(b) IFRS 15 clarifies the objective of the requirements for constraining estimates of variable consideration and provides a level of confidence of 'highly probable' for determining when to include those estimates in the transaction price. This represents a change from the 2011 Exposure Draft, which specified that an entity could only recognise revenue for estimates of variable consideration when an entity was 'reasonably assured' that it would be entitled to that amount.

(c) IFRS 15 provides additional guidance on the allocation of the transaction price to performance obligations:

(i) the residual approach may be used for two or more goods or services with highly variable or uncertain stand-alone selling prices if at least one good or service has a stand-alone selling price that is not highly variable or uncertain; and