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IFRS 15 — Assessment of promised goods or services

Date recorded:

IFRS 15 Revenue from Contracts with Customers — Assessment of promised goods or services (Agenda Paper 3)


In September 2018, the Committee discussed a submission about whether a stock exchange (entity) promises to transfer an admission service (non-refundable upfront fees that relate to activities the entity undertakes at or near contract inception to enable the customers' admission to the exchange) that is distinct from the ongoing listing service.

In the fact pattern described in the submission, the entity charges the customer a non-refundable upfront fee and an ongoing listing fee. The entity undertakes various activities at or near contract inception to enable admission to the exchange and those activities are required to successfully transfer the goods or services for which the customer has contracted—i.e. the service of being listed on the exchange. However, the performance of those activities by the entity does not transfer a service to the customer. Accordingly, having considered the requirements in IFRS 15 and the narrow and specific fact pattern as set out in the tentative agenda decision, the Committee concluded that the entity does not promise to transfer any good or service to the customer other than the service of being listed on the exchange.

In its September 2018 meeting, the Committee agreed not to add this matter to its standard-setting agenda but to publish an agenda decision. The Committee also agreed that the agenda decision shall only include analysis about the performance obligation but not about the timing of revenue recognition before the Committee looks into further analysis prepared by the staff.

Comment letters were received and a majority of respondents agree with the Committee's decision not to add the matter to its standard-setting agenda.

Some respondents have different views on the technical analysis as set out in the agenda decision, in particular on whether the activities undertaken represent a service transferred to the customer on initial listing. The staff analyse that the performance of those activities do not transfer the 'listing service' (i.e. the service of being listed on the exchange) to the customer as the activities are performed.

Staff recommendation

The staff recommended finalising the agenda decision as published in IFRIC Update in September 2018 with editorial changes.


Most Committee members agreed with the staff analysis that the admission service does not represent a service transferred to the customer. Instead, the listing application could be withdrawn or lapse and thus it can be understood as the process of evaluating whether to accept the customer, and future "listing services" may or may not be provided to the customer.

The Chair suggested to make two amendments in the agenda decision based on the discussion, which include (i) replacing the term "including" to "such as" before the list of activities the entity performs to enable the customer's admission to the exchange, in order to ensure it is not a closed set and (ii) inserting the point of customer acceptance procedure in addition to "reviewing customer's listing application" in the list of activities the entity performs.

The Committee decided, by a majority vote, to finalise the agenda decision.

Correction list for hyphenation

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