AASB 15 Revenue from Contracts with Customers 35-37,B2-B13: Recognise revenue over time only when one of the three criteria is met: simultaneous consumption, customer-controlled work in progress, or no alternative use plus an enforceable right to payment

What does 35-37,B2-B13 require?

Control passes over time, and revenue is recognised over time, when the customer receives and consumes the benefit as the entity performs (as for routine or recurring services, tested by asking whether a replacement supplier would have to redo substantially all the work completed so far, ignoring contractual or practical barriers to switching), when the entity's work creates or enhances an asset the customer controls as it is created, or when the work produces nothing the entity could redirect to another use and the entity holds an enforceable entitlement to be paid for what it has completed so far. Alternative use is judged at inception, considering contractual restrictions that are substantive and practical limitations such as significant rework or loss on redirection, and is not revisited unless a modification substantively changes the obligation. The right to payment must at all times cover at least cost plus a reasonable margin for work done if the customer ends the contract for any reason other than a failure by the entity to perform, judged on the contract terms and the law that applies to it, including whether courts would enforce the right and whether customary practice has made such rights unenforceable; a right to payment that only arises on completion of a milestone, or a deposit that does not compensate for work to date, does not qualify.