IFRS 15 news

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 news items related to IFRS 15.

Related news

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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 9, IAS 2 (two decisions), IFRS 15 (three decisions), IFRS 16/IAS 36, IAS 36 (two decisions), IFRS 8 and IAS 7/IAS 8.

EFRAG survey on IFRS 15

22 Mar 2022

The European Financial Reporting Advisory Group (EFRAG) has launched a survey to seek input from users and preparers on the effects of IFRS 15 on revenue recognition.

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The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2020/2021. The report sets out the FRC’s expectations of areas of corporate reporting that require improvement and highlights the ten most frequently raised topics where improvements to reporting quality are needed.

Call for papers — Research on IASB’s post-implementation reviews of IFRS Standards

12 Feb 2021

The IFRS Foundation are seeking academic research paper proposals on the application of the disclosure requirements in IFRS 15 ‘Revenue from Contracts with Customers’ or the application of the disclosure requirements in IFRS 7 ‘Financial Instruments: Disclosures’ by entities applying IFRS 9 ‘Financial Instruments’.

IASB, FASB, and The Accounting Review call for academic research papers on the performance of standards in capital markets

10 Feb 2021

The IASB, FASB, and The Accounting Review (TAR) are requesting academic research papers focusing “on the effectiveness of the FASB’s and/or IASB’s standards on revenue recognition (Topic 606 and IFRS 15 'Revenue from Contracts with Customers'), leases (Topic 842 and IFRS 16 'Leases'), and financial instruments (Topic 326, 'Financial Instruments – Credit Losses and IFRS 9 Financial Instruments').”

IASB posts recording of recent webinar on academics and the post-implementation reviews of IFRS 15

09 Feb 2021

The IASB has posted the recording of its recent webinar on identifying research opportunities by academics in IFRS 15 ‘Revenue from Contracts with Customers’.

Academics and the post-implementation reviews of IFRS 9, IFRS 15, and IFRS 16

12 Jan 2021

The IFRS Foundation is offering three webinars aimed at identifying how academics can contribute to the post-implementation reviews of IFRS 9 'Financial Instruments', IFRS 15 'Revenue from Contracts with Customers', and IFRS 16 'Leases'.

Deloitte IFRS Masterclass 2020

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On 8-10 December 2020, Deloitte Middle East offers the IFRS Masterclass 2020 as an online event. There is no charge for attending, however, prior registration is required.

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The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors, in advance of the 2020/21 reporting season, setting out its expectations for preparers of reports and accounts for the coming year.

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FRC calls for improvements in the reporting of revenue and leases

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The Financial Reporting Council (FRC) has published the results of two thematic reviews covering the current reporting on IFRS 15 ‘Revenue from Contracts with Customers’ and IFRS 16 ‘Leases’ following the first year of its application. The reviews identify a number of areas where companies need to improve their reporting.

IAAER grants for research informing the IASB's work

30 Jun 2020

The 'Research Informing the IASB Decision Process programme' of the International Association for Accounting Education and Research (IAAER) has awarded grants to academics from Canada, Sweden, the UK, and the USA to conduct research that will be relevant to the IASB's work.

IPSASB extends comment letter deadline for its three recent exposure drafts

23 Apr 2020

On 24 February 2020, the International Public Sector Accounting Standards Board (IPSASB) released three interconnected exposure drafts: ED 70 'Revenue with Performance Obligations', ED 71 'Revenue without Performance Obligations', and ED 72 'Transfer Expenses'.

ESMA publishes 24th enforcement decisions report

03 Apr 2020

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 15 (three decisions), IFRS 7, IFRS 9/IAS 12, IFRS 10, IAS 34, and IFRS 15/IFRS 16.

IPSASB publishes three exposure drafts

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The International Public Sector Accounting Standards Board (IPSASB) has released three interconnected exposure drafts: ED 70 'Revenue with Performance Obligations', ED 71 'Revenue without Performance Obligations', and ED 72 'Transfer Expenses'.

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05 Feb 2020

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FRC announces thematic reviews for 2020/2021

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The Financial Reporting Council (FRC) has announced the corporate reporting and audit quality thematic reviews that it will undertake in 2020/21.

We comment on five IFRS Interpretations Committee tentative agenda decisions

25 Nov 2019

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 21, IAS 29, IFRS 15, and IFRS 16, as published in the September 2019 IFRIC Update.

FRC publishes findings on the quality of corporate reporting in 2018/2019

30 Oct 2019

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2018/2019, which provides the FRC's assessment of corporate reporting in the UK based on evidence from a variety of sources, including the work of the FRC's own Corporate Reporting Review (CRR) team.

ESMA announces enforcement priorities for 2019 financial statements

22 Oct 2019

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2019 financial statements will focus on.

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