Maintenance and consistent application

Date recorded:

Principal versus Agent: Software Reseller (IFRS 15) — Finalisation of agenda decision (Agenda Paper 12)

At its April 2022 meeting, the IFRS Interpretations Committee (Committee) decided to finalise an agenda decision in response to a submission asking whether, in applying IFRS 15, a reseller of software licences is a principal or agent.

In November 2021, the Committee discussed the submission and decided to publish a tentative agenda decision, having concluded that the principles and requirements in IFRS Accounting Standards provide an adequate basis for a reseller to determine whether—in the submitted fact pattern—it is a principal or agent for the standard software licences provided to a customer. The Committee did not conclude on whether the software reseller is a principal or agent, which requires the application of judgement. Instead, the tentative agenda decision set out the applicable requirements and walked through how the reseller would apply those requirements to the submitted fact pattern.

The purpose of this meeting was to ask IASB members whether they object to the finalisation of the agenda decision.

There was no discussion of this paper and no IASB member objected to the finalisation of the agenda decision.

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