(i) Core Principles of IFRS 15
IFRS 15 is based on the following core principle:

• An entity recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

This principle emphasizes that revenue recognition should reflect the economic realities of the transaction and provide useful information to users about the timing and nature of revenue.

(ii) Five-Step Model in IFRS 15
The five-step model for revenue recognition under IFRS 15 includes:

1. Step 1: Identify the Contract(s) with a Customer
   • A contract is an agreement between two or more parties that creates enforceable rights and obligations. This step involves determining whether the contract meets specific criteria to be accounted for under IFRS 15.
2. Step 2: Identify the Separate Performance Obligations in the Contract
   • A performance obligation is a promise to transfer a distinct good or service to a customer. The entity must identify all distinct performance obligations within the contract.
3. Step 3: Determine the Transaction Price
   • The transaction price is the amount of consideration the entity expects to receive in exchange for transferring goods or services. This step includes considering variable consideration, the effects of the time value of money, and any non-cash considerations.
4. Step 4: Allocate the Transaction Price to the Performance Obligations
   • Once the transaction price is determined, it must be allocated to each performance obligation based on the standalone selling price of each good or service.
5. Step 5: Recognize Revenue When (or As) the Entity Satisfies a Performance Obligation
   • Revenue is recognized when control of the good or service is transferred to the customer. This can occur at a point in time or over time, depending on the nature of the performance obligation.