A shift in the top line – the new global revenue standard is here at last
The IASB has published IFRS 15 ‘Revenue from Contracts with Customers’.
- replaces IAS 18 ‘Revenue’, IAS 11 ‘Construction Contracts’ and some revenue-related Interpretations
- establishes a new control-based revenue recognition model
- changes the basis for deciding whether revenue is recognised at a point in time or over time
- provides new and more detailed guidance on specific topics
- expands and improves disclosures about revenue.
We have covered the introduction and scope of IFRS 15 in the July 2014 issue. In this issue, the details of Five Steps of Revenue Recognition under IFRS 15 are discussed.