Bundled revenue template

An Excel template for one customer contract that bundles several goods or services – for example equipment, installation, software, support and training. It works through the five steps of IFRS 15 and turns your inputs into a monthly revenue schedule, the contract balances and the journal for the year.

What it does

• Checks the IFRS 15.9 contract criteria and assesses up to eight promises for distinctness, combining those that are not distinct into performance obligations.

• Builds the transaction price: fixed and variable consideration (with the constraint), a financing adjustment, consideration payable to the customer and non-cash consideration.

• Allocates the price by relative stand-alone selling price, with options for the residual approach, a discount that relates to specific performance obligations and variable consideration allocated to one obligation.

• Schedules revenue over 48 months at a point in time or on a straight-line basis over time, and compares it with up to 12 invoices to give the contract asset or contract liability at each month end.

• Summarises revenue by performance obligation and by year (point in time and over time), opening and closing contract balances, remaining performance obligations by time band and a balanced journal for the year.

What you get

• One Excel workbook (.xlsx) with an Instructions tab, the blank template and a completed worked example for a fictitious company.

• Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.

• Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.

Scope

One contract per copy. Warranties, principal-versus-agent, licences of intellectual property, contract modifications, costs of obtaining or fulfilling a contract and progress methods other than straight line are outside its scope.

Designed for small and medium-sized businesses reporting under IFRS Accounting Standards. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.