Major publications on IFRS 15

The Financial Reporting Council (FRC) continues to raise queries in relation to revenue recognition policies and related disclosures.  Its Annual Review of Corporate Reporting and previously issued IFRS 15 thematic review identify the most common areas of challenge and set out the FRC's expectations for high-quality reporting, highlighting those areas where improvements to reporting quality are still needed.  These include:

  • Accounting policies which should be provided for all significant performance obligations and should address the timing of revenue recognition (whether over time or at a point in time), exactly when revenue is recognised for 'point in time' performance obligations, the basis for recognising revenue over time and the methodology applied to assess the extent to which 'over time' performance obligations have been satisfied.  
  • Disclosures with respect to variable consideration including explanations as to the nature of variable consideration and how it is estimated and, where necessary, constrained using either the 'expected value' or 'most likely amount' method.  The FRC highlights that disclosures that refer to a significant risk of a downward adjustment to revenue may suggest that the constraint may not have been appropriately applied.
  • Disclosures of the significant judgements made in applying the standard including those in relation to the allocation of the transaction price, the timing of satisfaction of performance obligations and whether an entity is principal or agent.
  • Disclosures of contract balances such as the nature of the balance and significant changes.

The FRC will continue to challenge companies whose disclosures fail to match its expectations.

This page provides all of our major publications related to IFRS 15.

Related Publications

Accounting roundup — Closing Out 2021

16 Dec 2021

Closing Out 2021 discusses the principal corporate reporting issues arising in respect of 31 December 2021 annual reports, covering areas of regulatory focus identified in the FRC’s Annual Review of Corporate Reporting 2020/2021, issues arising from climate change including new and forthcoming climate-related disclosures and developments in reporting standards.

A Closer Look — Revenue recognition - evaluating whether an entity is acting as a principal or as an agent

25 Jun 2019

In April 2016, the IASB issued Clarifications to IFRS 15 which amended the principal-versus-agent implementation guidance and illustrations in IFRS 15 to clarify how the principal-versus-agent indicators should be evaluated to support an entity’s conclusion that it controls a specified good or service before it is transferred to a customer. However, given the complexities of some arrangements, including those involving three or more parties, the evaluation of whether an entity is acting as a principal or as an agent continues to require significant judgement, and conclusions reached under IAS 18 may not be the same as those reached under IFRS 15.

Need to know — Disclosing the new adoption of accounting standards in interim financial statements

21 Jun 2018

Both IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers' are mandatorily effective for annual periods beginning on or after 1 January 2018. For many entities, the first financial statements reflecting adoption of these significant standards will be an interim report for the six months to June 2018. IFRS 16 'Leases' is also available for early adoption in 2018 financial statements.

Implementing IFRS 15 'Revenue from Contracts with Customers' - A practical guide to implementation issues for the asset management sector

16 Oct 2017

This guide is intended to provide an overview of applying IFRS 15 within the asset management sector. The guidance provided here is not intended to be exhaustive, but aims to highlight some of the potential issues to consider and to indicate how those issues might be approached.

Need to know — FRC consults on changes to FRS 102 to reflect recent changes in IFRSs

10 Oct 2016

The FRC has published a Consultation Document Triennial review of UK and Ireland accounting standards – Approach to changes in IFRS. This forms part of the first triennial review of FRS 102 and sets the direction of travel for UK GAAP. Areas under discussion within this Consultation include revenue recognition, leases and impairment model for financial assets. This Need to know discusses this Consultation.

Need to know — IASB introduced clarifications to IFRS 15

20 Apr 2016

This newsletter outlines the IASB's recent clarifying amendments to IFRS 15 'Revenue from Contracts with Customers'.

Need to know — Joint Meeting on Revenue (November 2015)

18 Nov 2015

This Need to Know summarises the November meeting of the IASB and FASB joint revenue transition resource group (TRG).

Point of view: Mining sector — IFRS 15, the new revenue Standard could impact profile of revenue and profit recognition

09 Oct 2015

This publication highlights issues from the new revenue recognition standard that will be of interest to those in the mining sector.

Need to know — IASB issues amendments to defer effective date of IFRS 15

16 Sep 2015

This edition outlines the September 2015 amendments to IFRS 15 'Revenue from Contracts with Customers' formalising the deferral of the effective date by one year to 2018.

Need to know — IASB proposes clarifications to IFRS 15

01 Sep 2015

This edition outlines the proposed clarifications to IFRS 15 Revenue from Contracts with Customers set out in the recent exposure draft ED/2015/6 Clarification to IFRS 15 which was issued in July 2015 for public comment.

Need to know - Joint Meeting on Revenue (July 2015)

04 Aug 2015

This newsletter summarises the July 2015 meeting of the IASB and FASB joint revenue transition resource group.

Need to know — IASB proposes amendments to IFRS 15 to defer the effective date by one year

28 May 2015

This newsletter summarises the May 2015 Exposure Draft aimed at deferring the effective date of IFRS 15 Revenue from Contracts with Customers to 1 January 2018.

Need to know — IASB tentatively decides to defer the effective date of IFRS 15 by one year

28 Apr 2015

This newsletter discusses the April 2015 decision of the IASB to propose to defer the effective date of IFRS 15 Revenue from Contracts with Customers.

Need to know - Joint Meeting on Revenue (March 2015)

14 Apr 2015

This newsletter summarises the March 2015 meeting of the IASB and FASB joint revenue transition resource group.

Implementing IFRS 15 'Revenue from Contracts with Customers' - A practical guide to implementation issues for the travel, hospitality and leisure sector

31 Mar 2015

This guide is intended to provide an overview of applying IFRS 15 within the travel, hospitality and leisure sector. The guidance provided here is not intended to be exhaustive, but aims to highlight some of the potential issues to consider and to indicate how those issues might be approached.

Implementing IFRS 15 'Revenue from Contracts with Customers' - A practical guide to implementation issues for the aerospace and defence industry

31 Mar 2015

This guide is intended to provide an overview of applying IFRS 15 within the aerospace and defence industry. The guidance provided here is not intended to be exhaustive, but aims to highlight some of the potential issues to consider and to indicate how those issues might be approached.

Implementing IFRS 15 'Revenue from Contracts with Customers' - A practical guide to implementation issues for the industrial products and services sector

09 Mar 2015

This guide is intended to provide an overview of applying IFRS 15 within the industrial products and services sector. The guidance provided here is not intended to be exhaustive, but aims to highlight some of the potential issues to consider and to indicate how those issues might be approached.

Need to know — Joint meeting on Revenue (January 2015)

09 Feb 2015

This newsletter provides summarises the January 2015 meeting of the IASB and FASB joint revenue transition resource group.

Need to know — Joint meeting on Revenue (October 2014)

10 Nov 2014

This newsletter provides summarises the October 2014 meeting of the IASB and FASB joint revenue transition resource group.

Need to know — Joint meeting on Revenue (July 2014)

10 Nov 2014

This newsletter provides summarises the July 2014 meeting of the IASB and FASB joint revenue transition resource group.

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