IFRS 15 Revenue from Contracts with Customers
IFRS 15 came into effect for accounting periods beginning on or after 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.
IFRS 15, however, brings considerable implementation challenges, particularly for companies with complex and/or long-term contracts, and demands a more thorough understanding of a businesses’ revenue recognition and measurement policies.
Applying IFRS 15
We can help your organisation understand and implement 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.