Consignment Stock and IFRS 15

Unique goods shipped to a customer from an order with T&C's of not invoicing until used.

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If an entity has an agreement with a long standing customer whereby they ship goods on a consignment basis, invoicing only on usage, would this revenue be recongnised on delivery?

To add some more detail. The customer places an order for unique goods, ie. these goods can't be diverted to another customer without being brought back and reworked by the entity. The entity delivers the goods to the customer where they are held until the customer needs them. The customer can use them whenerver they are needed without permission from the entity. Historically the customer always uses the goods, they are never returned or diverted.

Is revenue recognised on delivery or when used (and invoiced) under IFRS 15?

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By seasiderunner
26th Jun 2018 10:26

Recognised at delivery as the items are available for us. Historically they are not returned. The customer has control.

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