Revenue resources

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 includes all of our resources on IFRS 15.  It includes links to:

Latest IFRS 15 Resources

Joint IASB and FASB webcast on revenue

15 Aug 2016

On 15 September 2016, the IASB and FASB will host a joint webcast to discuss implementation of the requirements in IFRS 15 'Revenue from Contracts with Customers' and ASC 606.

HM Treasury consults on application of IFRS 15 and IFRS 9 for the public sector and amendments to the FReM

10 Aug 2016

HM Treasury has issued consultations containing proposals for applying International Financial Reporting Standard (IFRS) 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers for the public sector and amendments to the Government Financial Reporting Manual (FReM) to incorporate the two standards.

ESMA calls for consistent application of IFRS 15

20 Jul 2016

The European Securities and Markets Authority (ESMA) has published a Public Statement aimed at promoting the consistent application of IFRS 15 'Revenue from Contracts with Customers' by European issuers listed on regulated markets.

CIPFA/LASAAC consults on new Code of Practice on Local Authority Accounting

18 Jul 2016

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) are seeking comments on an exposure draft of the 2017/18 Code of Practice on Local Authority Accounting in the UK (the Code) which would apply to accounting periods beginning on or after 1 April 2017 (“the exposure draft”).

EFRAG endorsement status report 6 July 2016

07 Jul 2016

This endorsement status report update reflects the issuance of EFRAG endorsement advice on 'Clarifications to IFRS 15 'Revenue from Contracts with Customers''.

EFRAG issues endorsement advice on Clarifications to IFRS 15

06 Jul 2016

The European Financial Reporting Advisory Group (EFRAG) has issued its endorsement advice letter to the European Commission for the use of the Clarifications to IFRS 15 'Revenue from Contracts with Customers' in the European Union (EU).

EFRAG issues draft endorsement advice on clarifications to IFRS 15

17 May 2016

The European Financial Reporting Advisory Group (EFRAG) has issued for comment its draft endorsement advice for the use of the clarifications to IFRS 15 'Revenue from Contracts with Customers' in the European Union (EU).

EFRAG endorsement status report 17 May 2016

17 May 2016

This endorsement status report update reflects that EFRAG published draft endorsement advice on 'Clarifications to IFRS 15'. Endorsement is currently expected in the first quarter of 2017.

FASB clarifies revenue guidance on practical expedients

10 May 2016

The US Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) No. 2016-12 'Narrow-Scope Improvements and Practical Expedients', which amends certain aspects of the Board’s new revenue standard, ASU 2014-09 'Revenue From Contracts With Customers'.

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'.

EFRAG endorsement status report 20 April 2016

20 Apr 2016

This endorsement status report update reflects that on 18 April 2016 the Accounting Regulatory Committee (ARC) voted in favour of endorsing the amendment 'Investment Entities – Applying the Consolidation Exception'. Endorsement is currently expected in the third quarter of 2016.

EFRAG endorsement status report 18 April 2016

19 Apr 2016

This endorsement status report update reflects that on 11 April 2016 the Accounting Regulatory Committee (ARC) voted in favour of endorsing IFRS 15 'Revenue from Contracts with Customers' including the amendments to IFRS 15 'Effective date of IFRS 15'. Endorsement is currently expected in the second half of 2016.

EFRAG endorsement status report 13 April 2016

13 Apr 2016

This endorsement status report update reflects the issuance of 'Clarifications to IFRS 15 'Revenue from Contracts with Customers'' by the IASB on 12 April 2016. Endorsement is currently expected in the first quarter of 2017.

IASB publishes clarifications to IFRS 15

12 Apr 2016

The International Accounting Standards Board (IASB) has published final clarifications to IFRS 15 'Revenue from Contracts with Customers'. The amendments are effective for annual reporting periods beginning on or after 1 January 2018 (same effective date as IFRS 15 itself). Earlier application is permitted.

Chief Accountant of the SEC comments on revenue recognition

24 Mar 2016

At an accounting and reporting congress in Philadelphia, Jim Schnurr, Chief Accountant of the US Securities and Exchange Commission (SEC), shared some of his thoughts and perspectives on the continuing transition activities for the new revenue standard.

Stay Tuned Online - IFRS and UK GAAP update March 2016

14 Mar 2016

The following topics are covered in the March 2016 webcast: 1 - Revenue - latest developments, 2 - The Financial Reporting Council's (FRC's) 2015 Corporate Reporting Review, 3 - Leasing - the new International Financial Reporting Standard (IFRS) 4 - a round up of other UK corporate reporting news and 5 - IFRS developments and reminders.

EFRAG endorsement status report 9 March 2016

09 Mar 2016

This endorsement status report update reflects that the final endorsement of IFRS 15 'Revenue from Contracts with Customers' for use in the European Union is now expected in the second half of 2016 (was: second quarter of 2016).

IASB says TRG not scheduled to meet again

22 Jan 2016

The IASB has announced that the Transition Resource Group for Revenue Recognition (TRG) is not scheduled to meet again.

IFRS Foundation publishes proposed IFRS Taxonomy update for IFRS 16 'Leases'

21 Jan 2016

The IFRS Foundation has published a proposed IFRS Taxonomy update 'IFRS Taxonomy 2015 — IFRS 16 'Leases''.

IASB publishes editorial corrections

08 Dec 2015

The IASB has published a batch of editorial corrections to stand-alone standards.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.