IFRS 15 - Revenue from Contracts with Customers establishes the principles to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. It outlines a five-step model framework for revenue recognition that includes identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when the performance obligations are satisfied.

For example, under IFRS 15, if a software company enters into a contract to provide a service over a year and also delivers a software license, the revenue for the software license might be recognized at the point in time it is delivered, while the service revenue would be recognized over time as the service is provided.