IAS 18 states that the standard should be
applied for revenue that has risen from the following transactions (IAS 18.1);
sale of goods, rendering of services and the users by others of the entity
assets yielding interest, royalties and dividends differences article. It is
possible to refer to separable components of a transaction to reflect the
essence of the transaction. This determines them separately according to the
principle of ‘priority over content’. IAS 18 guidelines are applicable to
separate components of transaction without specifying clear criteria as to
which components are separate and should be reported as such. It also says that
in ‘certain circumstances’, however then does not go into more detail about
what those circumstances are. IFRS 15 step 2, goes in to detail that is the
goods and services are distinct, then the promises are performance obligations
and are accounted for separately. The main difference though is that the
entities promise to transfer the goods or services to the customer is
separately identifiable from the promises in the contract.