An entity should account for a contract modification as a separate contract under IFRS 15 when both of the following conditions are met:

1. The modification adds distinct goods or services. The additional goods or services are considered distinct if the customer can benefit from the good or service on its own or together with other resources readily available and the promise to transfer the good or service is separately identifiable from other promises in the contract.
2. The price of the contract increases by an amount of consideration that reflects the entity's standalone selling prices of the additional promised goods or services, including any appropriate adjustments to that price considering the circumstances of the particular contract.

For instance, a telecom company might have a contract with a customer for a basic phone and internet package. If the customer later decides to add a premium movie channel to their package (which is priced in line with the company's normal standalone selling price for that channel), this would be treated as a separate contract.

If these conditions are not met, the modification is instead accounted for as part of the existing contract. The accounting will then depend on whether the remaining goods or services to be delivered after the modification are distinct from those delivered prior to the modification.