BDO submits comment letter to the IASB on RFI on PIR of IFRS 15
BDO submits comment letter to the IASB on RFI on PIR of IFRS 15
BDO has submitted a comment letter in response to the Request for Information - Post-implementation Review IFRS 15 Revenue from Contracts with Customers (RFI) issued by the IASB.
While BDO believes that IFRS 15 has achieved its objective, and the requirements of IFRS 15 are capable of being applied appropriately, BDO has expressed concern in some areas. One of these is when applying IFRS 15 to the identification of performance obligations in complex contracts and licensing contracts, in many cases the relevant guidance is in the Basis for Conclusion. We suggest when certain paragraphs in the Basis for Conclusion become necessary for the application of the standard that they should either be moved to become mandatory application guidance or be located in the standard itself.
The Request for Information and BDO’s comment letter may be accessed here.
While BDO believes that IFRS 15 has achieved its objective, and the requirements of IFRS 15 are capable of being applied appropriately, BDO has expressed concern in some areas. One of these is when applying IFRS 15 to the identification of performance obligations in complex contracts and licensing contracts, in many cases the relevant guidance is in the Basis for Conclusion. We suggest when certain paragraphs in the Basis for Conclusion become necessary for the application of the standard that they should either be moved to become mandatory application guidance or be located in the standard itself.
The Request for Information and BDO’s comment letter may be accessed here.