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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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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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’.

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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').”

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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

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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 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

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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

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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'.

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

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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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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.

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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.

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