explain the relationship between the disaggregated revenue information and revenue
information that is disclosed for each reportable segment. [IFRS 15.115]. Users of the financial
statements believe this information is critical to their ability to understand not only the
composition of revenue, but also how revenue relates to other information provided in the
segment disclosures. Entities can provide this information in a tabular or a narrative form.
Regulators may review publicly provided information (e.g. investor presentations, press
releases) in order to evaluate whether entities have met the objectives of this disclosure
requirement. In accordance with paragraph B88 of IFRS 15, an entity needs to consider
how information about its revenue has been presented for other purposes, including
information disclosed outside the financial statements, information regularly reviewed
by the chief operation decision maker and other similar information used by the entity
or users of the financial statements to evaluate the entity’s financial performance or to
make resource allocation decisions.
To help determine the appropriate level of revenue disaggregation that is beneficial to
users of the financial statements, entities should analyse specific risk factors for each
revenue stream. Different risk factors for revenue streams may indicate when
disaggregation is required.
It is important to note that IFRS 15 and IFRS 8 have different objectives. The objective
of the segment reporting requirements in IFRS 8 is to enable users of the financial
statements to ‘evaluate the nature and financial effects of the business activities in which
an entity engages and the economic environment in which it operates’. [IFRS 8.20]. These
disclosure requirements are largely based on how the chief operating decision maker
allocates resources to the operating segments of the entity and assesses their
performance. [IFRS 8.5(b)]. They also permit aggregation in certain situations. In contrast,
IFRS 15 disclosure requirements focus on how the revenues and cash flows from
contracts with customers are affected by economic factors and do not have similar
aggregation criteria. As noted above, if an entity concludes that it is necessary to provide
disaggregated revenue disclosures along with the segment disclosures required under
IFRS 8, it is required under IFRS 15 to explain the relationship between the disclosures.
2296 Chapter 28
The Board provided some examples of the disclosures for disaggregation of revenue, as
follows. [IFRS 15.IE210-IE211].
Example 28.98: Disaggregation of revenue – quantitative disclosure
An entity reports the following segments: consumer products, transportation and energy, in accordance with
IFRS 8. When the entity prepares its investor presentations, it disaggregates revenue into primary
geographical markets, major product lines and timing of revenue recognition (i.e. goods transferred at a point
in time or services transferred over time).
The entity determines that the categories used in the investor presentations can be used to meet the objective
of the disaggregation disclosure requirement in paragraph 114 of IFRS 15, which is to disaggregate revenue
from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of
revenue and cash flows are affected by economic factors. The following table illustrates the disaggregation
disclosure by primary geographical market, major product line and timing of revenue recognition, including
a reconciliation of how the disaggregated revenue ties in with the consumer products, transportation and
energy segments, in accordance with paragraph 115 of IFRS 15.
Consumer
Segments
products
Transport
Energy Total
£
£
£
£
Primary geographical markets
North America 990
2,250
5,250
8,490
Europe 300
750
1,000
2,050
Asia 700
260
–
960
1,990
3,260
6,250
11,500
Major goods/service lines
Office Supplies
600
–
– 600
Appliances 990
–
– 990
Clothing 400
–
– 400
Motorcycles
–
500
– 500
Automobiles
–
2,760
– 2,760
Solar Panels
–
–
1,000 1,000
Power Plant
–
–
5,250 5,250
1,990
3,260
6,250
11,500
Timing of revenue recognition
Goods transferred at a point in
time 1,990
3,260
1,000
6,250
Services transferred over time
–
–
5,250 5,250
1,990
3,260
6,250
11,500
Since entities are encouraged to tailor their disclosure of disaggregated revenue, they
are unlikely to follow a single approach.
Revenue
2297
Consistent with the approach illustrated in Example 28.98 above, some early adopters
provide disaggregated revenue information within their segment reporting disclosure.
As shown in Extract 28.5 below, Capita plc discloses both revenue by major product
line and segment revenue by contract type in its segment note (Note 7). In the summary
of significant accounting policies (Note 2), it specifically states that this approach is
consistent with the objective of the IFRS 15 disclosure requirement and explains
differences in the terminology used in previous financial statements.
Entities that are required to apply IFRS 8 might already provide adequate information
that allows users to understand the composition of revenue. However, this information
might be based on non-GAAP information (i.e. the revenue that is reported to the chief
operating decision maker may be calculated on a basis that is not in accordance with
IFRS 15). In such a situation, an entity may need to disclose additional information to
meet the objective in paragraph 114 of IFRS 15.
Extract 28.5: Capita plc (2017)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS [Extract]
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Extract]
(e) Revenue [Extract]
The Group disaggregates revenue from contracts with customers by contract type, as management believe this best
depicts how the nature, amount, timing and uncertainty of the Group’s revenue and cash flows are affected by
economic factors. Categories remain the same as presented at the 2017 half year: ‘Long-term contractual – greater
than 2 years’ previously shown as ‘Contract term longer than 2 years’ and ‘Short-term contractual – less than 2 years’
as ‘Over time service with contract length less than 2 years’. Years based from service commencement date.
7 SEGMENTAL INFORMA
TION [Extract]
Year ended 31 December 2017
Group
Private
Public
Digital and
trading
Sector
Services Professional
Software
and central
Total
Business
Specific
Partnerships Partnerships
Services
Solutions IT
Services functions
underlying
Exit
Items Total
£m £m £m £m £m £m £m £m £m £m
Continuing operations
Long-term
contractual 1,214.0 774.1 225.1 370.9 323.3 22.6
2,930.0 –
2,930.0
Short-term
contractual 306.3
165.4 90.7 32.6 63.6 9.1
667.7 10.8 678.5
Transactional (point in
time)
68.0 147.7 217.0 7.4 120.9 9.2 570.2 55.9
626.1
Total
segment
revenue 1,588.3
1,087.2 532.8 410.9 507.8 40.9
4,167.9 66.7
4,234.6
Trading
revenue
1,730.3
1,161.5 667.9 451.2 770.2 97.4
4,878.5
4,878.5
Inter-segment revenue
(142.0)
(74.3) (135.1)
(40.3) (262.4)
(56.5) (710.6)
(710.6)
Total underlying
segment
revenue
1,588.3
1,087.2 532.8 410.9 507.8 40.9
4,167.9
4,167.9
2298 Chapter 28
In Extract 28.6, Slater and Gordon Limited includes segment disclosures, but also
separately discloses disaggregated revenue by major product line within its segment note
and type of contract in the revenue note (Note 3.1) in its 2017 annual financial statements.
Extract 28.6: Slater and Gordon Limited (2017)
Notes to the Financial Statements for the Year Ended 30 June 2017 [Extract]
Note 2: Segment Reporting [Extract]
AUS SGL
UK SGS
TOTAL
2017
2016 2017 2016 2017 2016 2017 2016
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Revenue
Fee and services
226,747 265,629
157,784
229,958
268,773
437,201 653,304
932,788
revenue
Movement in WIP (15,474) (27,848)
(16,570)
(17,391)
(19,801)
3,921 (51,845)
(41,318)
Revenue from
contracts with
211,273 237,781
141,214
212,567
248,972
441,122 601,459
891,470
customers
Other income
10,026
16,715
Total revenue and
611,485
908,185
other income
Note 3: Financial Performance [Extract]
3.1 Revenue from Contracts with Customers [Extract]
3.1.2 Disaggregation of Revenue from Contracts with Customers
The Group derives revenue from the transfer of goods and services over time and at a point in time, in the major product
lines of Personal Injury Law (“PIL”) and General Law (“GL”) and the geographical regions of Australia and the UK:
Australia
UK
Year ended 30 June 2017
PIL
GL
PIL
GL
SGS
Total
$’000
$’000
$’000
$’000
$’000
$’000
Type of contract:
Fixed
price
– 15,875
1,373
8,952 41,724
67,924
Time and Materials
–
22,608
6,351
36,507
80,266
145,732
No Win – No Fee
155,430
17,360
87,417
614
126,982
387,803
Revenue from contracts
155,430 55,843
95,141 46,073
248,972
601,459
with customers
Year ended 30 June 2016
Type of contract:
Fixed price
–
22,448
1,862
10,066
72,098
106,474
Time and Materials
–
29,532
5,025
41,733
164,761
241,051
No Win – No Fee
173,721
12,080
151,417
2,464
204,263
543,945
Revenue from contracts
173,721 64,060
158,304 54,263
441,122
891,470
with customers
Revenue
2299
In Extract 28.7, Fédération Internationale de Football Association (FIFA) splits its disclosure
of disaggregated revenue between the primary financial statements and the notes. In the
statement of comprehensive income, FIFA presents revenue on a disaggregated basis, by
the type of service. In the notes, FIFA further disaggregates each type of revenue into
different categories, depending on the nature of the revenue. For example, in Note 1, FIFA
disaggregates ‘Revenue from television broadcasting rights’ by geographical region, while
presenting ‘Revenue from marketing rights’ by type of customer. Since FIFA does not need
to comply with IFRS 8, it provides all disaggregation disclosures in accordance with
paragraph 114 of IFRS 15 and the requirements in paragraph 115 of IFRS 15 do not apply.
Extract 28.7: Fédération Internationale de Football Association (2017)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Extract]
in TUSD
Note
2017
2016
REVENUE
Revenue from television broadcasting rights
1
228,645
95,612
Revenue from marketing rights
2
245,277
114,574
Revenue from licensing rights
3
160,211
204,485
Revenue from hospitality/accommodation rights and ticket sales
4
22,368
0
Other revenue
5
77,701
87,025
Total revenue
734,202
501,696
Notes to the consolidated statement of comprehensive income [Extract]
1 REVENUE FROM TELEVISION BROADCASTING RIGHTS [Extract]
in TUSD
2017 2016
Europe
6,395 0
Asia and North Africa
71,652 35,642
South and Central America
50,499 24,768
North America and the Caribbean
58,377 28,601
Rest of the world
/>
13,863 1,388
Total revenue from television broadcasting rights by region
200,786
90,399
Other broadcasting revenue
13,799 1,010
Other FIFA event revenue
14,060 4,203
Total revenue from television broadcasting rights
228,645
95,612
2 REVENUE FROM MARKETING RIGHTS [Extract]
in TUSD
2017 2016
FIFA Partners
185,411 100,990
FIFA World Cup Sponsors
41,030 10,255
FIFA Regional Supporters
7,382 2,425
FIFA National Supporters
11,454 904
Total revenue from marketing rights
245,277
114,574
2300 Chapter 28
11.4.1.B Contract
balances
The Board noted in the Basis for Conclusions that users of the financial statements need
to understand the relationship between the revenue recognised and changes in the
overall balances of an entity’s total contract assets and liabilities during a particular
reporting period. [IFRS 15.BC341]. As a result, an entity is required to disclose: [IFRS 15.116]
• the opening and closing balances of receivables, contract assets and contract liabilities
from contracts with customers, if not otherwise separately presented or disclosed;
• revenue recognised in the reporting period that was included in the contract
liability balance at the beginning of the period; and
• revenue recognised in the reporting period from performance obligations satisfied
(or partially satisfied) in previous periods (e.g. changes in transaction price).
In addition, an entity is required to explain how the timing of satisfaction of its
performance obligations (see (a)(i) below at 11.4.1.C) relates to the typical timing of
payment (see (a)(ii) below at 11.4.1.C) and the effect that those factors have on the
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 457