In May 2014, the International Accounting Standards Board published IFRS 15 Revenue from Contracts with Customers. IFRS 15 contains comprehensive guidance for accounting for revenue and will replace existing requirements which are currently set out in a number of Standards and Interpretations.
This means that for many entities, the timing and profile of revenue recognition will change. In some areas, the changes will be very significant and will require careful planning, including for commercial effects.
This site has been set up to serve as a central source for revenue related resources of BDO including:
IFRS 15 establishes a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services.
Revenue will now be recognised by a vendor when control over the goods or services is transferred to the customer. The application of the core principle in IFRS 15 is carried out in five steps: