Summary

Nordlicht Screen Productions GmbH ("the producer") is commissioned by Kanal Vier Streaming ("the customer") to deliver a bespoke six-part documentary series for a fixed fee of €480,000, invoiced across four milestones tied to production progress. The producer grants an exclusive worldwide SVOD licence effective on final delivery and retains ownership of the work together with every right outside that window.

The licence is not distinct from the production service, so the two form one combined performance obligation and IFRS 15.B55 refers the timing question back to the general model. None of the three over-time criteria in IFRS 15.35 applies. The customer consumes no benefit during production and controls no asset as it is created; and while the termination clause gives the producer an enforceable right to cost plus margin, the retained residual rights mean the finished series does not lack an alternative use. Because IFRS 15.35(c) requires both limbs, it fails. Revenue is therefore recognized at the point in time at which control passes — acceptance of the delivered masters and effectiveness of the licence.

Cost side. Production spend is not automatically IFRS 15.95 fulfilment cost: that paragraph applies only to costs outside the scope of another standard, and here IAS 2 or IAS 38 takes precedence because the producer builds and retains an asset of its own. The milestone invoices raised ahead of transfer are contract liabilities until recognition.