AASB 15 Revenue from Contracts with Customers 95-98: Capitalise fulfilment costs outside other Standards only when they relate directly to a contract, generate resources for future performance and are recoverable; expense general, wasted and past-performance costs

What does 95-98 require?

Costs of fulfilling a contract that are not governed by AASB 102, AASB 116, AASB 138 or another Standard are recognised as an asset only if they tie directly to a specific contract (or an anticipated one the entity can specifically identify), generate or enhance resources the entity will use to satisfy future performance obligations, and are expected to be recovered; costs within other Standards follow those Standards. Directly related costs include direct labour and materials, allocations such as supervision, insurance and depreciation of tools and right-of-use assets, costs explicitly chargeable to the customer and costs incurred only because the contract exists. General and administrative costs not chargeable to the customer, wasted materials, labour or other resources not priced into the contract, costs of past performance and costs that cannot be split between satisfied and unsatisfied obligations are expensed as incurred.