The new standard comes into effect on 1 January 2018 and requires companies to recognise revenue representing the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.
Preparing for IFRS 15
Mazars can help your organisation prepare for IFRS 15. In addition to impact assessments and contract analyses, we ran a Long-term Contracts Club for organisations involved with long-term contracts. These workshops were run from April 2016 to February 2017, however, below you can download summaries of some of the most pressing issues considered, being:
- Introduction to the main principles of IFRS 15;
- Identification of performance obligations;
- Revenue recognition on transfer control;
- Incremental costs of obtaining a contract;
- Identification of contracts;
- Contract modifications;
- Variable consideration; and
- Presentation of contract assets and liabilities, licensing and principal versus agent considerations.