IFRS 15 introduces a detailed framework for addressing principal versus agent considerations in revenue recognition. Here's a brief look at how it works:

1. Identifying the Principal and the Agent: The key determinant is control. If a company controls a good or service before transferring it to a customer, it's acting as a principal in the contract. If it's arranging for another party to provide the good or service but doesn't control it, it's acting as an agent.
2. Revenue Recognition: When the company is acting as a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled. On the other hand, when it's an agent, it recognizes as revenue only the amount of any fee or commission to which it expects to be entitled for arranging for the goods or services to be provided by the other party.
3. Indicators of Control: IFRS 15 provides several indicators to assess who controls the specified good or service before it's transferred to the customer. These indicators include the entity's responsibility for the acceptability of the goods or services, inventory risk, discretion in establishing prices, etc.
4. Disclosure Requirements: Entities are required to disclose information that helps users of financial statements understand the nature and terms of the entity’s performance obligations in contracts with customers, including a description of the goods or services the entity has promised to transfer to the customer.

The application of these principles helps to ensure that revenue is recognized in a manner that depicts the transfer of control of goods or services to customers. This can lead to changes in the amount and timing of revenue recognition compared to previous standards.