Overview

After a decade long effort of a convergence project, the IASB and FASB issued the new revenue recognition standard “Revenue from Contracts with Customers” on 28 May 2014. Several new concepts have been introduced keeping in mind that revenue is a critical metric for financial users and there were important differences that existed which needed to be addressed. The 5-step model, clearer guidance on segmenting contracts, multiple element arrangements, contract costs, significant financing component and extensive disclosures are some of the areas that have changed the whole landscape of revenue recognition. The reason why it is of utmost importance to an entity is that IFRS 15 may cause revenue to be recognised earlier in some cases, but later in others compared to previous accounting guidance. This page is totally dedicated in simplifying this standard and assist you in integrating the new revenue rules.