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hello everyone welcome back my name is mallory and today i will be walking you through a technical guide on how to treat a loyalty program under ifrs 15. first lets review the core concepts of ifrs 15. this standard establishes the principles that an entity applies when reporting information about the nature amount timing and uncertainty of revenue in cash flows from a contract with a customer to recognize revenue under ifrs 15 an entity applies the following five steps the first is to identify the contracts with the customer the second is to identify the performance obligations in the contract in this case performance obligations are promises in a contract to transfer to a customer goods or services that are distinct the third criteria is to determine the transaction price and this is the amount of consideration that an entity expects to be entitled to the fourth is to allocate this transaction price to each performance obligation on the basis of the relative standalone selling price
