IFRS 15 news

The FRC noted in its Annual Review of Corporate Reporting 2022/23 that the frequency of substantive queries on revenue recognition and related disclosures were lower than in preceding years, indicating that entities have become more familiar with application of the IFRS 15 recognition model.  The most common areas of challenge included variable consideration, principal/agent considerations and contract balances. Queries were mostly centred around insufficient information to demonstrate compliance with certain requirements.

For their forthcoming reporting the FRC expects companies to ensure that:

  • when material variable consideration exists, sufficient company-specific information is provided to explain how it arises and how it is estimated and constrained.
  • accounting policies are provided for all significant performance obligations and address in sufficient detail:
    • the timing of revenue recognition.
    • the basis for recognising any revenue over time.
    • the methodology applied.
  • significant judgements made in relation to revenue recognition are disclosed (for example, in relation to whether the company is acting as agent or principal, the allocation of the transaction price and the timing of satisfaction of performance obligations).
  • that inflationary features in contracts with customers and accounting for such clauses (that is whether the feature is an embedded derivative or variable consideration) are adequately disclosed and clearly explained.

The FRC encourages companies to refer to its previously issued IFRS 15 thematic review for further guidance as to its expectations in this area.

This page provides all of our news items related to IFRS 15.

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UKEB publishes its draft comment letter on the IASB’s Request for Information regarding the Post implementation Review of IFRS 15

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The UK Endorsement Board (UKEB) has published its draft comment letter in response to the International Accounting Standards Board's (IASB's) Request for Information on its Post-implementation Review of IFRS 15 'Revenue from Contracts with Customers'.

EFRAG draft comment letter on the request for information on the post-implementation review of IFRS 15

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The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's request for information seeking comments from stakeholders to identify whether the impairment requirements in IFRS 15 'Revenue from Contracts with Customers' provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

IASB publishes request for information on the post-implementation review of IFRS 15

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The International Accounting Standards Board (IASB) has issued a request for information (RFI) seeking comments from stakeholders to identify whether the requirements in IFRS 15 'Revenue from Contracts with Customers' provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard. Comments on the RFI are requested by 27 October 2023.

UKEB to hold outreach on IFRS 15

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The UK Endorsement Board (UKEB) is to hold roundtables for preparers to understand UK preparers' views on the implementation of IFRS 15 'Revenue from Contracts with Customers'. It will also be conducting short one-to-one interviews to understand UK investor /user views on company reporting of their revenue.

​EFRAG seeks input to an academic study on the effects of the adoptions of IFRS 15 Revenue from Contracts with Customers on management control systems.

26 May, 2023

The European Financial Reporting Advisory Group (​EFRAG) has launched a survey to seek input from preparers to an academic study on the effects of the adoptions of IFRS 15 'Revenue from Contracts with Customers' on management control systems.

We respond to FRED 82 'Draft Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs'

05 May, 2023

We have published our comment letter on the Financial Reporting Council's (FRC's) Financial Reporting Exposure Draft (FRED) 82 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs'.

ESMA publishes 27th enforcement decisions report

29 Mar, 2023

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 10/IFRS 16/IAS 1, IFRS 8, IAS 38 (two decisions), IFRS 16, IFRS 15, IAS 36/IAS 1, IAS 1, IFRS 7, IFRS 9 (two decisions), and IAS 32/IFRS 9.

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