IFRIC 15 — Meaning of 'continuous transfer'


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.


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