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IFRS15 Revenue recognision on booking fees

IFRS15 Revenue recognision on booking fees

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We use a website agent to sell tickets to events. The website adds a fee to customer bookings and the customer pays directly to the our agent.  The agent then remits net payment to us without the booking fee.  From the customer perspective, it looks as though the fee is being paid directly to us, but we do not receive any of the booking fees.  Should we treat the booking fee as an income and expense to our company, or should we just ignore as the fee is collected by a third party?

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25th Mar 2019 10:59

Probably the former, but ask your accountant.

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25th Mar 2019 11:17

Possibly the latter, but ask your solicitor what the contract means?

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By Bobbo
25th Mar 2019 14:11

This is in no way definitive but:

If you go onto the agent's website, how does the ticket price for your events appear?

Does it show as 1) £x ticket price plus £y booking fee or 2) £z ticket price (where z equals x+y)?

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