The Exposure Draft proposes to clarify:
- how to identify the performance obligations in a contract;
- how to determine whether a party involved in a transaction is the principal (responsible for providing the goods or services) or the agent (responsible for arranging for the goods or services to be provided to the customer); and
- how to determine whether a licence provides the customer with a right to access or a right to use the entity’s intellectual property.
In addition, the IASB proposes two reliefs to aid the transition to the new revenue Standard.