IFRS 15 provides specific guidance for handling contracts that can be cancelled, renewed or modified. Here are the key considerations:

1. Contracts that can be Cancelled: Even if a contract can be cancelled by either party, it doesn't affect the determination of the transaction price or the allocation of that price to performance obligations. If a contract gets cancelled, an entity stops recognizing revenue and immediately recognizes the amount previously recognized as contract liability as revenue, unless the entity has no remaining obligations.
2. Example: If a magazine subscription can be cancelled at any time, the entity still recognizes revenue over the period the magazines are delivered, and not all at once at the start of the contract.
3. Renewal of Contracts: The renewal of a contract could be considered a modification of the contract or a separate contract depending on the specific terms. If the renewal provides the customer with a material right, it's treated as a separate performance obligation.
4. Example: If a telecom operator offers discounted rates upon renewal of a contract, the option to renew is a material right. The transaction price is then allocated between the telecom services and the renewal option.
5. Contract Modifications: If a contract is modified to add new distinct goods or services at a price that reflects their standalone selling prices, it's treated as a separate contract. If not, it's considered a modification of the existing contract, and the transaction price and its allocation to performance obligations need to be updated.
6. Example: If a customer and a software developer agree halfway through a project to add a new module to the software, and the price for this new module is consistent with its standalone selling price, the addition of the new module is treated as a separate contract. If the price of the new module isn't standalone, the software developer accounts for the modification by updating the transaction price and the allocation of that price to performance obligations.

Understanding and applying these considerations accurately is important for correct revenue recognition in accordance with IFRS 15.