Revenue Definition Ifrs 15

The revenue standard all ifrs reporters will be impacted by ifrs 15 when it becomes effective in 2018.

Revenue definition ifrs 15. The new revenue model under ifrs 15 means that revenue may be recognised over time for some deliverables accounted for under ias 18 as goods e g. Reporting revenue under ifrs 15 is now one of the ordinary activities of companies in the 100 countries that use ifrs standards. 1 march 2020 when to recognise revenue revenue is recognised when as performance obligations are satisfied in the amount of transaction price allocated to satisfied performance obligations ifrs 15 46. Take stock to pull together in one place what we have learned about this new world of revenue recognition.

So this feels like the right time to. Ifrs 15 refers to a performance obligation as a promised good or service i e promise in a contract that is distinct. It also means that revenue may be recognised at a point in time for some deliverables accounted for under ias 18 as services and. International financial reporting standard ifrs 15.

So why is ifrs 15 so extensive. The ifrs foundation s logo and the ifrs for smes logo the iasb logo the hexagon device eifrs ias iasb ifric ifrs ifrs for smes ifrs foundation international accounting standards international financial reporting standards niif and sic are registered trade marks of the ifrs foundation further details of which are available from the ifrs. Ifrs 15 impacts any company with revenue but particularly telecommunications firms and any company party to long term contracts with customers since it requires a different way of thinking about revenue that could impact both the amount and timing of revenue recognition. How should a promised good or service be identified.

Revenue from contracts with customers was introduced by the international accounting standards board to provide one comprehensive revenue recognition model for all contracts with customers to improve comparability within industries across industries and across capital markets. It seems understandable and very easy at first sight and it truly is in many cases. Some industries will experience greater changes than others. Performance obligations and timing of revenue recognition ifrs 15 last updated.