Principal

IFRS 15 for real estate companies: principal or agent?

In my last article, I provided an overview of the requirements for determining whether an entity is acting as a principal or an agent. I want now to look at this topic in more detail, and with a focus on the real estate sector—where it can be a considerable challenge. Rental contracts have a leasing component accounted for under IFRS 16 Leases, as well as ( […]

IFRS 15: are you a principal or an agent?

“When another party is involved in providing goods or services to a customer, the entity shall determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself (i.e. the entity is a principal) or to arrange for those goods or services to be provided by the other party (i.e. the entity is an agent)…” […]
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