How to Recognise Revenue in Multi Component Sales under IAS 18

What is a Multi-component Sale?

So far we’ve looked at revenue from the viewpoint of selling one good or one service at a time.

However, often goods or services can be packaged together for sale in one deal.

Examples of this include the sale of:

  • A washing machine sold with an additional extended warranty
  • A television service sold with telephone and broadband

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Introduction to IAS 18 Revenue


Revenue is the name given to an entity’s income that arises in the ordinary course of activities and is known by a number of other names including:

  1. Sales
  2. Fees
  3. Interest
  4. Dividends
  5. Royalties
  6. Rent

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