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IFRS 15 — Summary, Requirements & Changes | Deloitte CFR

About the standard

IFRS 15, Revenue from Contracts with Customers, is a new standard that outlines a single comprehensive framework for entities to use in accounting for revenue arising from contracts with customers. It supersedes current revenue recognition guidance including IAS 18, Revenue and IAS 11, Construction Contracts and related Interpretations.

The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.

The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is delivered in a five-step model:

  1. Identify the contract(s) with a customer
  2. Identify the performance obligations in the contract
  3. Determine the transaction price
  4. Allocate the transaction price to the performance obligations in the contract
  5. Recognize revenue when (or as) the entity satisfies a performance obligation


IFRS 15 also includes a cohesive set of disclosure requirements that significantly expands the current disclosure requirements related to revenue recognition.

The standard is effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

 

Why should you use this page?

On this page, find an executive summary of the IFRS 15 standard, practical sample questions and illustrative examples on how to apply IFRS 15.  

Use this page to:

  • Find out the main changes to IFRS 15, including its amendments;
  • Learn how IFRS 15 differs from IAS 18;
  • Learn how to apply the 5-step approach;
  • Learn how IFRS 15 is applicable to certain industries;
  • Learn how to draft your financial statements and note disclosures for IFRS 15.

Our selection of resources will help answer some of your questions:

  • What’s included in the new standard?
  • What do I need to disclose?
  • What action items do I need to take to effectively apply the new standard?

 

Reach out to our IFRS 15 specialist

Joyce Lam

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