IFRS 15 Calculator — Day-Exact Revenue Allocation

Tool for step 5 of the IFRS 15 five-step model: recognize revenue as (or when) you satisfy each performance obligation. Day-exact output method. ASC 606 compatible. Auditor-ready output. No signup.

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Where this tool fits in IFRS 15

The five-step IFRS 15 model has four judgment-heavy steps (1-4) and one arithmetic-heavy step (5). This calculator handles step 5 specifically for time-based performance obligations — the most common pattern in SaaS, services, subscriptions, and retainers.

Identify the contract (judgment)
Identify performance obligations (judgment)
Determine transaction price (judgment)
Allocate transaction price to obligations (judgment)
Recognize revenue as obligations are satisfied (arithmetic — this tool)

Day-exact output method

IFRS 15 §41 permits the output method as a measure of progress toward satisfying an over-time obligation. When the obligation is performed uniformly over time (software access, ongoing service, retainer work), day-exact time-based output measurement is the cleanest application. BillSplitter computes it.

The alternative — input method (IFRS 15 §41, §B14-B19) based on costs incurred — is useful for construction contracts and long-term projects with non-uniform cost profiles. For uniform-delivery services, output-based time measurement is simpler and equally defensible.

Worked example — SaaS subscription crossing fiscal years

A SaaS company signs an annual subscription on 2024-10-01, running until 2025-09-30. Transaction price: USD 24,000. Allocated to a single performance obligation (software access over 365 days). The company has a December 31 fiscal year-end.

Day-exact allocation under IFRS 15 step 5, output method:

FY2024: Oct 1 – Dec 31 = 92 days → (92/365) × 24,000 = USD 6,049.32
FY2025: Jan 1 – Sep 30 = 273 days → (273/365) × 24,000 = USD 17,950.68
Total: USD 24,000.00

At 2024 year-end close: USD 17,950.68 sits in deferred revenue (liability), USD 6,049.32 is recognized revenue. IFRS 15 compliant, auditable, reproducible.

Disclosure requirements

IFRS 15 §113-129 requires disclosure of: revenue disaggregated by categories (segment, product, timing); contract balances (AR, contract assets, contract liabilities); performance obligations (when typically satisfied, significant payment terms); and significant judgments (when control transfers, transaction price estimation).

BillSplitter's output contributes directly to the revenue disaggregation disclosure (split by period) and provides the day-exact arithmetic auditors look for when evaluating the recognition method.

Related tools

Revenue recognition calculator — same tool, framed around the general revenue recognition principle.
Invoice prorate calculator — invoice-focused framing.
General prorate calculator — proration outside accounting contexts.
Fiscal year allocation — custom fiscal year-end scenarios.

Frequently asked questions

What is IFRS 15?

IFRS 15 (Revenue from Contracts with Customers) is the international accounting standard that governs when and how companies recognize revenue from customer contracts. It replaced IAS 18 and came into force in 2018. It applies to publicly-listed companies in the EU, UK, Switzerland, Asia-Pacific, and anywhere else IFRS is mandated.

What's the five-step IFRS 15 model?

1) Identify the contract with a customer. 2) Identify the performance obligations in the contract. 3) Determine the transaction price. 4) Allocate the transaction price to the performance obligations. 5) Recognize revenue when (or as) the entity satisfies each performance obligation. BillSplitter handles step 5 for time-based obligations — the day-exact allocation you need when an obligation is satisfied over time.

When do I use 'over time' recognition under IFRS 15?

Per IFRS 15 §35, recognize over time if any one of three criteria applies: (a) the customer simultaneously receives and consumes the benefits as you perform (e.g., cleaning service), (b) the customer controls the asset you're creating (e.g., construction on customer land), or (c) you have no alternative use for the asset created AND an enforceable right to payment for performance to date. If none apply, recognize at a point in time when control transfers.

What's the 'output method' vs 'input method'?

IFRS 15 §41 gives two methods for measuring progress toward satisfying over-time obligations. Output method: based on units delivered or milestones completed. Input method: based on costs or time incurred. For time-based services with uniform performance (SaaS, subscriptions, retainers), day-exact time-based proration is the natural output measure. BillSplitter uses time-based output measurement — the most common and defensible approach.

Does BillSplitter handle variable consideration (e.g., volume discounts)?

Not directly. BillSplitter splits a known transaction price across time periods. If your contract has variable consideration (volume discounts, performance bonuses, penalties), you have to estimate the expected value per IFRS 15 §50-54 first — that's judgment, not math. Once you have the estimated transaction price, BillSplitter splits it.

What does 'day-exact' mean in IFRS 15 terms?

Day-exact is the most granular application of the time-based output method. Instead of assuming each month delivers 1/12 of the obligation (which is inaccurate — months differ in length), you compute the exact day count per period and weight by that. A 366-day obligation in a leap-year period gets split 336/30 instead of 11/1, precisely matching reality.

Can I use this for contract modifications?

Partially. If a modification changes the remaining obligation and/or consideration, you re-run BillSplitter on the new post-modification service period and transaction price. The pre-modification portion already recognized stays as-is. IFRS 15 §18-21 has the full framework for contract modifications — BillSplitter handles the arithmetic once you've classified the modification correctly.