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

EFRAG endorsement status report 3 December 2015

03 Dec, 2015

This endorsement status report update reflects that the European Union has published a Commission Regulation adopting 'Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)' for use in the European Union. It also reflects that the Accounting Regulatory Committee (ARC) meeting was cancelled due to the special situation in Brussels, therefore ARC votes on IFRS 15 and amendments to IFRS 10, IFRS 12 and IAS 28 will not occur until the first quarter of 2016. Accordingly, endorsement of these pronouncement is now expected in the second quarter of 2016.

IFRS Foundation releases training material for IFRS 9 and IFRS 15

27 Nov, 2015

The IFRS Foundation's education initiative has releases slide decks to support those teaching IFRSs. The material provided now is for IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers'. Both standards are effective for annual reporting periods beginning on or after 1 January 2018 with early application permitted.

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).

EFRAG publishes final comment letter on clarifications to IFRS 15

12 Nov, 2015

The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter on the IASB exposure draft ED/2015/6 'Clarifications to IFRS 15'.

TRG discusses implementation of new revenue standard

11 Nov, 2015

At its 9 November 2015, meeting, the FASB’s and IASB’s joint revenue transition resource group (TRG) discussed potential issues related to implementing the boards’ new revenue standard.

Revenue transition resource group releases meeting agenda

03 Nov, 2015

The FASB and IASB have released the agenda for the next meeting of their joint revenue transition resource group (TRG), which will be held on 9 November 2015.

'What kind of accounting standards should the IASB write?'

02 Nov, 2015

The IASB makes available a paper by IASB member Mary Tokar published in the Journal of Accounting and Management Information Systems (JAMIS). The paper focuses on a long-standing challenge for standard setters: What kind of standards should they write?

We comment on the proposed clarifications to IFRS 15

28 Oct, 2015

We have published our comment letter on the International Accounting Standards Board's (IASB) Exposure Draft ED/2015/6 'Clarifications to IFRS 15'.

Deloitte comment letter on IASB ED/2015/6 'Clarifications to IFRS 15'

28 Oct, 2015

Deloitte Touche Tohmatsu Limited has responded to the International Accounting Standards Board's (IASB) Exposure Draft ED/2015/6 Clarifications to IFRS 15.

FRC comments on the IASBs clarifications to IFRS 15

13 Oct, 2015

The Financial Reporting Council (FRC) has commented on the IASB exposure draft ED/2015/6 'Clarifications to IFRS 15'.

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.

IFRS 15 — ESMA believes the IASB has identified the right issues, calls for clear documentation of impacts of differences between IASB and FASB

08 Oct, 2015

The European Securities and Markets Authority (ESMA) has commented on the IASB exposure draft ED/2015/6 'Clarifications to IFRS 15'.

FASB proposes clarifications to its new revenue standard

30 Sep, 2015

The US Financial Accounting Standards Board (FASB) has issued a proposed ASU, 'Narrow-Scope Improvements and Practical Expedients', that would amend certain aspects of the Board’s May 2014 revenue standard, ASU 2014-09, 'Revenue From Contracts With Customers'.

Stay Tuned Online - IFRS and UK GAAP update September 2015

28 Sep, 2015

The following topics are covered in the September 2015 webcast: 1 - IFRS 15 'Revenue from Contracts with Customers' - an update, 2 - New UK GAAP - latest developments, 3 - Annual report insights and 4 - a round up of other news including IFRS developments and news from the Financial Reporting Council.

IPSASB announces strategy for 2015 forward

18 Sep, 2015

The International Public Sector Accounting Standards Board (IPSASB) has released its final strategy and work programme for 2015-2018. Among the projects to be taken up is also a revenue recognition project that will consider the extent to which the principles in IFRS 15 are appropriate for transactions in the public 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.

EFRAG endorsement status report 15 September 2015

15 Sep, 2015

This endorsement status report update reflects that EFRAG has finalised its endorsement advice on IFRS 9 ‘Financial Instruments’ and that the Accounting Regulatory Committee (ARC) has voted in favour of adopting 'Annual Improvements to IFRSs 2012–2014'.

IASB defers effective date of IFRS 15

11 Sep, 2015

The International Accounting Standards Board (IASB) has published 'Effective Date of IFRS 15' deferring the effective date of IFRS 15 'Revenue from Contracts with Customers' to 1 January 2018. Earlier application of IFRS 15 continues to be permitted.

EFRAG believes IASB should only clarify IFRS 15 where absolutely necessary

04 Sep, 2015

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2015/6 'Clarifications to IFRS 15'.

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.

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.