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hi this is sylvia and in this video ill try to explain the difference between a contract asset under ifrs 15 and a trade receivable todays question comes from raj from nepal what is the difference between contract asset and a trade receivable i know that contract asset is a new term under ifrs 15 but i just dont understand when we should account for a contract asset and when to account for a trade receivable isnt it the same the answer is no its not the same thing and in this episode ill try to explain the definitions of both terms and try to explain in a simple human language with common sense what the difference is right and then i will try to illustrate it with the example so contract asset is the term defined by ifrs 15 as an entitys right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time for example the entitys future performance and the trade receivabl