Page 15 - PowerPoint Presentation

IFRS 15 AND CHALLENGES IN ITS

IMPLEMENTATION

Issue date Supersedes

o Issued May 2014. o The previous revenue
o Sets out the requirements for Standards:
recognising revenue that apply IAS 18 Revenue
to all contracts with customers IAS 11 Construction Contracts,
except for contracts within the o The related Interpretations
scope of; on revenue recognition:
• leases, IFRIC 13 Customer Loyalty
• Insurance contracts and Programmes,
• Financial instruments. IFRIC 15 Agreements for the
(Effective from 1 January 2018. Construction of Real Estate,
Earlier application is permitted) IFRIC 18 Transfers of Assets from
Customers and
SIC-31 Revenue – Barter

Transactions Involving
Advertising Services.
Convergence Quick forward
o Joint project between IASB and For straightforward contract
FASB, such as retail transactions, IFRS

o Establishes a single, 15 will have little, if any, effect
comprehensive framework for on the amount and timing of
revenue recognition. revenue recognition.

o To be applied consistently across For other contracts, such as
transactions, industries and long-term service contracts
capital markets, and will improve and multiple-element
comparability in the ‘top line’ arrangements, IFRS 15 could
o The IASB and the FASB have result in some changes either
formed Transition Resource to the amount or timing of the
Group a group of external revenue recognised by a
stakeholders to identify and company.
discuss issues that may arise.

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