IFRS 15 – Revenue from Contracts with Customers is mandatory for financial statements prepared in accordance with IFRS from 1 January 2018.
The Standards was published in May 2014 and amended in April 2016 in order to clarify certain issues. It replaces the previous revenue recognition Standards, namely IAS 11 – Construction Contracts and IAS 18 – Revenue, as well as the related interpretations.
IFRS 15 introduces a single-five step revenue recognition model that is applicable to all types of contracts with customers in all sectors, resulting in improved comparability of financial statements. It also covers the accounting for licences.
Implementation of IFRS 15 may be complex, as it requires an
entity to understand the intricacies of numerous different concepts
(control, performance obligations, stand-alone selling price, costs
incurred to fulfil a contract, et.), to comply with the principles
set out in each step of the revenue recognition model, and to make
frequent use of judgement while taking account of the facts and
circumstances of each specific situation.
In addition to the revenue recognition issues, entities must also
pay close attention to the disclosures in the notes to the
financial statements, in order to ensure that they comply with the
requirements of the Standard.
Download the full studying from: https://www.mazars.com.mt/Home/News/Surveys-Studies/IFRS-15-Key-points-of-the-revenue-recognition
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
