AASB 15 Revenue from Contracts with Customers 39-45,B14-B19: Measure progress toward complete satisfaction with one method per obligation applied consistently, output or input based, updated each period, and cap revenue at recoverable cost when progress cannot be measured reasonably

What does 39-45,B14-B19 require?

For each over-time obligation the entity selects a single method that depicts its performance in transferring control, applies it consistently to similar obligations, and remeasures progress at every reporting date, treating changes as changes in estimate under AASB 108. Output methods measure value transferred to date against total value (surveys, milestones, units delivered), and may use a right-to-invoice expedient where the invoice amount corresponds directly to value transferred; they are unsuitable where the outputs chosen would omit work in progress or finished goods the customer controls. Input methods measure effort or cost consumed against total expected input; inefficiencies not priced into the contract are excluded, and where uninstalled materials transferred to the customer do not reflect performance, revenue on them is recognised only to the extent of their cost. Goods or services whose control has not passed are left out of the measure. Revenue is recognised only if progress can be measured reasonably; when outcome cannot yet be measured but costs are expected to be recovered, revenue is limited to costs incurred until a reasonable measure becomes possible.