IFRS in Practice 2019
13. Mai 2019
Introduction
For all entities applying IFRS, IFRS 15 Revenue from Contracts with Customers came into effect for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted. This means for those entities applying the full
retrospective transition method with a 31 December year end, the transition date is 1 January 2017.
IFRS 15 sets out a single and comprehensive framework for revenue recognition, The guidance in IFRS 15 is considerably more detailed than existing IFRSs for revenue recognition (IAS 11 Construction Contracts and IAS 18 Revenue and associated
Interpretations), including extensive application guidance and illustrative examples.
For many entities applying IFRS, IFRS 15 will bring about significant changes as to when revenue will be recognised and introduce a significant degree of complexity in identifying what goods or services have been provided to a customer, measuring the value of the goods and services to the customer and determining when each performance obligation has been satisfied.
Entities need to determine the impact of this new standard. They will need to identify which contracts and transaction types will be impacted, determine which process and systems will require modifying and communicate impacts to stakeholders.
Many entities enter into long-term contracts with customers that straddle the transition dates (i.e. 1 January 2017 and 1 January 2018). IFRS 15 permits a number of different approaches to transitioning to IFRS 15; these various approaches will result both in different reported profit and loss and in different levels of complexity.
Although when issued in 2014, IFRS 15 was fully converged with US GAAP (ASC 606) following amendments made by the FASB and IASB, the standards are no longer fully converged.
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