Plan for change
A single, global converged, principal-based revenue recognition model – MFRS 15 Revenue from Contracts with Customers is effective from 1 January 2018 and it replaces most revenue recognition standards, e.g. MFRS 118 Revenue, MFRS 111 Construction Contracts and etc. Companies should not underestimate the level of judgment and attention to the documentation supporting those judgments.
Areas where you might encounter changes
The new guidance will not only necessitate updates to existing financial accounting policies, procedures and systems, but will also potentially affect internal controls, contracts and compensation, as well as tax accounting. Even if reported amounts do not change materially, significant new disclosures require careful attention.
We believe that most companies should anticipate and budget for the significant effort to address:
• accounting policies and disclosures;
• processes to develop and incorporate many new management judgments into revenue accounting;
• related internal controls that will require updating, if not overhauling, as a result of changes to accounting policies and processes;
• systems to capture, process and report new data and etc.
New Revenue Model
How Grant Thornton Malaysia can assist in adoption of MFRS 15
We have developed a set of MFRS 15 Contract Review Tool to facilitate the process of evaluating the contracts under MFRS 15. It will assist the management in assessing their revenue contracts and identify the appropriate accounting treatment in compliance with MFRS 15.
Please contact your Grant Thornton personnel or contact us at firstname.lastname@example.org for more details.
For other publications:
Click to view our Special Edition of MFRS Hot Topic
Click to view other Grant Thorntons IFRS 15 publications