Apply the five-step model to every contract. AERA identifies performance obligations, allocates transaction price, determines timing of recognition, handles variable consideration and contract modifications — all with full audit trail and automated journal entries.
Each contract goes through the IFRS 15 five-step framework: identify the contract, identify performance obligations, determine transaction price, allocate to obligations, recognize revenue. AERA guides users through each step with validation checks and documentation.
Estimate variable consideration using expected value (probability-weighted) or most likely amount methods. Apply the constraint test per IFRS 15.56-58 to include only amounts for which a significant reversal is highly improbable. Reassess at each reporting date.
Determine whether each performance obligation is satisfied over time (IFRS 15.35) or at a point in time (IFRS 15.38). For over-time obligations, choose the appropriate measure of progress — output method or input method — and track completion against milestones or costs incurred.
When contract scope or price changes, AERA determines the accounting treatment per IFRS 15.18-21: separate contract, prospective adjustment, or cumulative catch-up. Automatic reallocation of transaction price and revised revenue recognition schedule.
Monitor the relationship between revenue recognized, billings issued, and cash collected. AERA automatically calculates contract assets (revenue ahead of billing), contract liabilities (billing ahead of revenue), and trade receivables with period-over-period movement analysis.
Generate IFRS 15 disclosures with revenue disaggregated by geography, product line, timing of recognition, and contract type. Remaining performance obligations disclosure with expected timing of satisfaction. Full reconciliation tables for auditor review.
No forms, no sales funnel. Just a conversation about what AERA can do for your IFRS 15 compliance.