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

FASB issues ASU deferring the effective date of the new revenue standard

12 Aug, 2015

The FASB has issued an ASU, “Revenue From Contracts With Customers (Topic 606): Deferral of the Effective Date,” which defers for one year the effective date of the new revenue standard for public and nonpublic entities reporting under U.S. GAAP.

Need to know - Joint Meeting on Revenue (July 2015)

04 Aug, 2015

This newsletter summarises the July 2015 meeting of the IASB and FASB joint revenue transition resource group.

IASB proposes clarifications to IFRS 15

30 Jul, 2015

The International Accounting Standards Board (IASB) has published an Exposure Draft (ED/2015/6) with proposed clarifications of IFRS 15 'Revenue from Contracts with Customers'. Comments are requested by 28 October 2015.

EFRAG supports the IASB’s deferral of IFRS 15

29 Jul, 2015

On 17 March 2015, the European Financial Reporting Advisory Group (EFRAG) submitted an endorsement advice letter to the European Commission (EC) that recommended IFRS 15 be adopted "with the effective date set by the IASB". This phrase means that if the IASB should at a future point of time decide to delay the effective date, it will also be delayed in Europe. With the IASB’s decision at its 22 July 2015 meeting to defer the effective date of IFRS 15 by one year; the EFRAG has notified the EC that it recommends the 1 January 2018 effective date, as set by the IASB, for application in Europe.

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

24 Jul, 2015

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) is seeking comments on an exposure draft of the 2016/17 Code of Practice on Local Authority Accounting in the UK (the Code) which would apply to accounting periods beginning on or after 1 April 2016 (“the exposure draft”). CIPFA and LASAAC is also seeking comments on a consultation which seeks to improve the presentation of local authority financial statements and on proposed changes to the service reporting code of practice which will apply to accounting periods commencing on 1 April 2016.

EFRAG endorsement status report 23 July 2015

23 Jul, 2015

This endorsement status report update reflects that the IASB has voted to defer the effective date of IFRS 15 and that EFRAG has issued final endorsement advice on 'Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)' (issued in December 2014).

IASB votes to defer the effective date of IFRS 15

22 Jul, 2015

The IASB has just unanimously affirmed its proposal to defer the effective date of IFRS 15 'Revenue from Contracts with Customers' to 1 January 2018. Earlier application of IFRS 15 continues to be permitted.

TRG discusses implementation of new revenue standard

16 Jul, 2015

At its 13 July 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.

IFRS 15 'Revenue from Contracts with Customers' — Your questions answered

15 Jul, 2015

This publication, developed by CPA Canada and Deloitte Canada, answers some of the most common questions coming from stakeholders on IFRS 15. In addition it highlights some key aspects of the standard and provides practical illustrative examples to facilitate better understanding of the standard and its implementation.

FASB votes to defer the effective date of new revenue standard

09 Jul, 2015

At its meeting today, the FASB affirmed its proposal to defer for one year the effective date of the new revenue standard (ASU 2014-09, "Revenue From Contracts With Customers") for public and nonpublic entities reporting under U.S. GAAP. In addition, the FASB affirmed that all entities would be permitted to early adopt the standard as of the original effective date in ASU 2014-09 (i.e., annual reporting periods beginning after December 15, 2016).

AOSSG warns against delaying effective dates

09 Jul, 2015

The Asian-Oceanian Standard-Setters Group (AOSSG) has commented on the International Accounting Standards Board's (IASB) Exposure Draft ED/2015/2 'Effective Date of IFRS 15'. The AOSSG supports deferring the effective date in this case but warns the IASB against setting 'a precedent for constituents seeking amendments to the effective date of other standards, whenever the implementation is found to be challenging'.

Revenue transition resource group releases meeting agenda

07 Jul, 2015

The IASB and FASB released the agenda for the upcoming meeting of their joint revenue transition resource group (TRG), which will be held on 13 July 2015.

We comment on the proposed deferral of the effective date of IFRS 15

06 Jul, 2015

We have published our comment letter on the International Accounting Standards Board's (IASB) Exposure Draft ED/2015/2 'Effective Date of IFRS 15'.

Deloitte comment letter on IASB ED/2015/2 'Effective Date of IFRS 15'

06 Jul, 2015

In our comment letter, we agree with the proposal to defer the effective date of IFRS 15 by one year. We also encourage the IASB and the FASB to continue with the targeted clarifications to the revenue requirements to ensure that a converged, stable, and operational standard is available to preparers sufficiently far in advance of the effective date. Lastly, we encourage the IASB to continue to monitor the implementation progress to make sure the revised effective date remains appropriate.

Deloitte comment letter on IASB ED/2015/2 'Effective Date of IFRS 15' - Appendix

06 Jul, 2015

Deloitte Touche Tohmatsu Limited has responded to the International Accounting Standards Board's (IASB) Exposure Draft ED/2015/2 'Effective Date of IFRS 15' and has appended the response of Deloitte & Touche in the U.S. to the corresponding FASB proposal to its response.

EFRAG final comment letter on the IASB's Exposure Draft amending the effective date of IFRS 15

03 Jul, 2015

The European Financial Reporting Advisory Group (EFRAG) has published its comment letter on the IASB exposure draft (ED) proposing deferral of the effective date of IFRS 15 Revenue from Contracts with Customers by one year.

ICAEW comment letter on the IASB's Exposure Draft amending the effective date of IFRS 15

30 Jun, 2015

The Institute of Chartered Accountants in England and Wales (ICAEW) has published its comment letter on the IASB exposure draft (ED) proposing deferral of the effective date of IFRS 15 Revenue from Contracts with Customers by one year.

EFRAG endorsement status report 29 June 2015

30 Jun, 2015

This endorsement status report update reflects several expected delays in the endorsement of IFRS for the use in the European Union. Most notable is a delay in the endorsement of IFRS 15, which is now expected in the first quarter of 2016.

ESMA comment letter on the IASB's Exposure Draft amending the effective date of IFRS 15

29 Jun, 2015

The European Securities and Markets Authority (ESMA) has published its comment letter on the IASB exposure draft (ED) proposing deferral of the effective date of IFRS 15 Revenue from Contracts with Customers by one year.

Chief Accountant of the SEC believes former SEC Chairman's call for burying IFRS was 'premature'

08 Jun, 2015

At a financial reporting conference in California, Jim Schnurr, Chief Accountant of the US Securities and Exchange Commission (SEC) confirmed that the SEC does not intend to bury the objective of a single set of high-quality, globally accepted accounting standards.

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