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IFRIC 15 — Meaning of 'continuous transfer'

Background

An IFRIC Interpretations Committee project to consider whether decisions reached in the IASB's revenue recognition project could provide insight into clarification of the meaning of "continuous transfer" under IFRIC 15 Agreements for the Construction of Real Estate.

The Committee had received an inquiry related to IFRIC 15 and recognition of revenue under continuous transfer. Specifically, the submitter asked for clarification on the following matters in the context of the sale of apartments off plan:

  • does continuous transfer of control mean that the buyer receives control over the part-completed work in progress or the seller loses control and the buyer gains protective rights?
  • does control mean that the buyer has legal or physical possession of the work in progress while construction takes place; or is it sufficient that the seller is unable to sell the work in progress to anyone else?
  • whether the unit of account for a development is each individual unit or the entire block.

 

Current status of the project

Although the Committee has decided not to formally add this project to its agenda, the Committee continues to liaise with the IASB on this issue as part of the revenue recognition project.

 

Related Discussions

  • IFRIC 15 – Clarification of the meaning of continuous transfer

  • May 15, 2012

  • The IFRS Interpretations Committee considered advice from the IASB to retain IFRIC 15 as drafted, and that the Board noted that a careful assessment needs to be made of the facts and circumstances of individual transactions when applying IFRIC 15.

  • IFRIC 15 — Meaning of continuous transfer

  • Mar 01, 2012

  • The IASB discussed the two submissions received by the Interpretations Committee requesting clarification of the notion of continuous transfer of a good in IFRIC 15, Agreements for the Construction of Real Estate.

  • Administrative session

  • Sep 08, 2011

  • The IFRS Interpretations Committee deferred further work on two topics (contingent pricing of property, plant and equipment and the 'continuous transfer' concept under IFRIC 15) given the interrelationship of the topics to two projects currently being discussed by the IASB (the revenue and leasing projects).

  • IFRIC 15 – Clarification of the meaning of continuous transfer

  • Mar 11, 2011

  • The IFRS Interpretations Committee considered a request asking for clarification on the meaning of the term, 'continuous transfer' in paragraph 17 of IFRIC 15 'Agreements for the Construction of Real Estate', with a view to determining whether the issue should be taken onto the Committee's agenda.

All Related