AASB 15 Revenue from Contracts with Customers 99-104: Amortise contract cost assets in step with how the related goods or services transfer, update the pattern for significant timing changes, and test them for impairment after other contract assets, with reversals permitted

What does 99-104 require?

Assets from obtaining or fulfilling a contract are amortised systematically in step with the transfer of the goods or services they relate to, which may extend to a specific anticipated contract such as a renewal, and the amortisation is revised, as a change in estimate under AASB 108, for a significant change in expected timing. An impairment loss goes to profit or loss for any excess of the carrying amount over the remaining consideration the entity expects to receive for the related goods or services (determined on transaction price principles without the constraint and adjusted for customer credit risk) less the directly related costs not yet expensed. Impairment of other contract-related assets under AASB 102, AASB 116 or AASB 138 is recognised first, after which the remaining carrying amount joins its cash-generating unit for AASB 136 testing. Reversals are recognised when conditions improve, capped at the carrying amount that would have stood net of amortisation had no impairment been recognised.