International Financial Reporting Standards (IFRS) are continually changing. This technical update is designed to help ensure that finance teams are aware of those changes, allowing them to consider the impact that they may have on their company.
We provide an overview of the key action points to be aware of and a review of the coming changes.
IFRS 15 is the result of a joint project between the International Accounting Standards Board ('IASB') and the US equivalent, FASB.
The aim of the project was to align revenue recognition between IFRS and USGAAP and to provide a robust framework for addressing revenue issues.
IFRS 15 only applies to contracts with customers. A customer, who could be a related party, is defined as a party that has contracted to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.
We cover the the key changes arising from the standard and their implications for companies.