Revenue Recognition (Revenue from Contracts with Customers)
Treatment under IFRS
Erlöse werden nach dem 5-Stufen-Modell realisiert: (1) Vertrag identifizieren, (2) Leistungsverpflichtungen abgrenzen, (3) Transaktionspreis bestimmen, (4) auf Leistungsverpflichtungen allokieren, (5) Erlös bei Erfüllung erfassen.
- Leistungsverpflichtungen werden einzeln abgegrenzt (distinct goods/services).
- Variable Gegenleistungen (Boni, Rabatte, Rückgaben) werden geschätzt und einbezogen.
- Umsatz wird "over time" oder "at a point in time" erfasst.
- Ausführliche Angabepflichten (Disaggregation, Vertragsverbindlichkeiten/-forderungen).
Treatment under German GAAP (HGB)
Realisationsprinzip (§ 252 Abs. 1 Nr. 4 HGB): Erlöse erst erfassen, wenn die Lieferung/Leistung erbracht ist und das wirtschaftliche Eigentum übergegangen ist.
- § 252 Abs. 1 Nr. 4 HGB: Realisationsprinzip.
- § 255 HGB regelt die Herstellungskosten bei langfristiger Fertigung.
- § 246 HGB: Vollständigkeitsgebot.
- Langfristige Fertigungsaufträge: HGB erlaubt grundsätzlich nur die Completed-Contract-Methode, IFRS schreibt eine zeitraumbezogene Erfassung (über die Zeit) vor.
Key differences
- Kein 5-Stufen-Modell; keine Pflicht zur Disaggregation der Erlöse.
- Variable Gegenleistungen werden deutlich restriktiver (Imparitätsprinzip) behandelt.
- Langfristige Aufträge: Kein Ausweis von Teilgewinnen bis zur Abnahme (Completed-Contract).
- Keine Pflicht zur Abgrenzung einzelner Leistungsverpflichtungen innerhalb eines Bündels.
- Weit geringere Angabepflichten im Anhang.
Example
Worked example
Assumptions: Long-term construction contract (e.g. plant engineering) with a fixed price of €1,000,000, expected total costs of €800,000 and an expected total profit of €200,000. Construction takes 3 years. The IFRS criteria for over-time recognition are met; progress is measured using the cost-to-cost method (costs incurred ÷ expected total costs). Under HGB this is a single contract with acceptance at the end (no partial acceptances) → completed-contract method. All amounts in euros; due to rounding, figures may differ by ±€1.
Step 1 – Stage of completion (cost-to-cost)
| Year | Cost in year | Cumulative cost | % complete |
|---|---|---|---|
| 1 | 240,000 | 240,000 | 30% |
| 2 | 360,000 | 600,000 | 75% |
| 3 | 200,000 | 800,000 | 100% |
| Σ | 800,000 | — | — |
Step 2 – Revenue and profit under IFRS (over time)
Cumulative revenue equals the stage of completion × contract price; annual revenue is the change from the prior year.
| Year | Revenue | Expense | Profit |
|---|---|---|---|
| 1 | 300,000 | 240,000 | 60,000 |
| 2 | 450,000 | 360,000 | 90,000 |
| 3 | 250,000 | 200,000 | 50,000 |
| Σ | 1,000,000 | 800,000 | 200,000 |
Step 3 – Revenue and profit under HGB (completed-contract)
No profit is recognised before acceptance. Costs incurred are capitalised as work in progress at production cost (§ 255 (2) HGB) and neutralised through the change in inventories; the entire profit arises only on acceptance in Year 3 (realisation principle, § 252 (1) No. 4 HGB).
| Year | Revenue | Expense (P&L) | Profit |
|---|---|---|---|
| 1 | 0 | 0 | 0 |
| 2 | 0 | 0 | 0 |
| 3 | 1,000,000 | 800,000 | 200,000 |
| Σ | 1,000,000 | 800,000 | 200,000 |
Step 4 – Balance-sheet effect (at each year-end)
Under IFRS a contract asset builds up equal to cumulative revenue (assumption: billing only on acceptance). Under HGB only work in progress at production cost is shown. The difference is exactly the cumulative profit already recognised under IFRS.
| Year-end | IFRS contract asset | HGB work in progress | Difference |
|---|---|---|---|
| 1 | 300,000 | 240,000 | 60,000 |
| 2 | 750,000 | 600,000 | 150,000 |
| 3 | 0 | 0 | 0 |
Step 5 – Profit comparison over the contract term
| Year | IFRS profit | HGB profit | Difference |
|---|---|---|---|
| 1 | 60,000 | 0 | +60,000 |
| 2 | 90,000 | 0 | +90,000 |
| 3 | 50,000 | 200,000 | −150,000 |
| Σ | 200,000 | 200,000 | 0 |
Step 6 – Journal entries
IFRS – Year 1: incur costs and recognise revenue by stage of completion.
| Account | Debit | Credit |
|---|---|---|
| Contract costs (expense) | 240,000 | |
| Bank / payables | 240,000 | |
| Contract asset | 300,000 | |
| Revenue | 300,000 |
HGB – Year 1: capitalise costs as work in progress; no revenue, no profit.
| Account | Debit | Credit |
|---|---|---|
| Expense (materials/personnel) | 240,000 | |
| Bank / payables | 240,000 | |
| Work in progress (inventory) | 240,000 | |
| Change in inventories (income) | 240,000 |
HGB – Year 3 (acceptance): the remaining €200,000 of costs are first capitalised as before (WIP €800,000); on acceptance, revenue is recognised and the capitalised work in progress is released to expense.
| Account | Debit | Credit |
|---|---|---|
| Trade receivables | 1,000,000 | |
| Revenue | 1,000,000 | |
| Change in inventories (expense) | 800,000 | |
| Work in progress | 800,000 |
Key takeaway
The total profit is the same under both frameworks (€200,000). IFRS, however, recognises it earlier over the construction period (over time by stage of completion), whereas HGB shows the entire profit only on acceptance in Year 3 (prudence / realisation principle). The profit recognised earlier under IFRS equals, in every year, exactly the difference in the balance-sheet carrying amounts from Step 4 (Year 1: €60,000; Year 2: €150,000; Year 3: €0). The result: smoother, earlier earnings under IFRS; a one-off jump in the year of acceptance under HGB.