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

FRC publishes the results of IFRS 9 and 15 thematic reviews

05 Nov, 2018

The Financial Reporting Council (FRC) has published the results of its thematic reviews looking at the disclosures made by companies on the impact of IFRS 9 ‘Financial Instruments’ and IFRS 15 ‘Revenue from Contracts with Customers’ in their June 2018 interim reports.

ESMA announces enforcement priorities for 2018 financial statements

27 Oct, 2018

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2018 financial statements will focus on.

FRC publishes year-end advice to preparers in advance of the 2018/19 reporting season

25 Oct, 2018

The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors, in advance of the 2018/19 reporting season, highlighting changes to reporting requirements and key matters which should be considered in the preparation of forthcoming annual reports and accounts.

FRC publishes findings on the quality of corporate reporting in 2017/2018

24 Oct, 2018

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance and Reporting 2017/2018, 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. The report also includes information on the level of compliance with the provisions of the UK Corporate Governance Code (“the Code”) as well as the quality of explanations and reporting provided by companies in their governance statements and committee reports.

2018 Update on Half Yearly Financial Reporting

03 Jul, 2018

The 2018 edition of our popular guide to half-yearly financial reporting contains a regulatory overview, setting out the requirements for half-yearly financial reports and changes for preparers to contend with in 2018, including disclosures on the impact of implementing IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, a model half-yearly financial report, including illustrative IAS 34 condensed financial statements; and a disclosure checklist.

Need to know — Disclosing the new adoption of accounting standards in interim financial statements

21 Jun, 2018

Both IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers' are mandatorily effective for annual periods beginning on or after 1 January 2018. For many entities, the first financial statements reflecting adoption of these significant standards will be an interim report for the six months to June 2018. IFRS 16 'Leases' is also available for early adoption in 2018 financial statements.

FRC issues a briefing setting out current ‘hot topics’ of its Corporate Reporting Review team

12 Jun, 2018

The Financial Reporting Council (FRC) has issued a Briefing setting out the current ‘hot topics’ of its Corporate Reporting Review (CRR) team. The CRR team monitors the quality of corporate reporting in the UK and enforces compliance with accounting standards and relevant company law.

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

10 Apr, 2018

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) have issued the 2018/19 Code of Practice on Local Authority Accounting in the UK (the Code) which would apply to accounting periods beginning on or after 1 April 2018.

ICAEW webinar on IFRS 15

03 Apr, 2018

The Institute of Chartered Accountants in England and Wales (ICAEW) will be hosting a webinar on International Financial Reporting Standard (IFRS) 15 ‘Revenue from Contracts with Customers' on 19 April 2018.

FRC publishes Strategy for 2018/21

27 Mar, 2018

The Financial Reporting Council (FRC) has published its three year strategy for 2018/21 and its budget and levy proposals for the 2018/19 financial year.

Deloitte publishes guide to new revenue standard

22 Mar, 2018

Deloitte has issued 'Revenue from Contracts with Customers — A guide to IFRS 15'. As the IASB's new revenue standard is now effective (for periods beginning on or after 1 January 2018 with earlier adoption permitted), this detailed guide helps entities consider the impact of the new standard. In some cases, IFRS 15 will require significant changes to systems and may significantly affect other aspects of operations.

Revenue from Contracts with Customers — A guide to IFRS 15

21 Mar, 2018

This detailed guide is intended to assist preparers and users of financial statements to understand the impact of IFRS 15 and includes a high-level executive summary of the new requirements, followed by a specific focus on the important issues and choices available for entities on transition to the new Standard.

Use of financial accounting standards to meet TCFD recommendations

12 Mar, 2018

The Climate Disclosure Standards Board (CDSB) has published 'Uncharted waters: How can companies use financial accounting standards to deliver on the TCFD’s recommendations?'. The publication explores how companies can use existing international accounting standards when implementing the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and comes out as the European Commission calls for the review of current IFRS to assess their potential impact on sustainable investment.

Paper on the new revenue recognition requirements from the investors' view

27 Feb, 2018

The CFA Institute, a global association of investment professionals, has published 'Revenue Recognition: Top Ten Questions Investors Should Be Asking Regarding the Adoption of the New Standard'.

Deloitte e-learning — IFRS 15

06 Feb, 2018

This Deloitte e-learning module provides training in the background, scope and principles under IFRS 15 'Revenue from Contracts with Customers', and the application of this Standard. Topics covered include the principles for the recognition of revenue to the sale of goods, services, licenses, royalties, and any variable consideration or modifications to contracts; and guidance is provided on how these principles should be applied by using the new five step revenue recognition model.

We comment on three IFRS Interpretations Committee tentative agenda decisions

29 Jan, 2018

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IFRS 15 and IFRS 9, as published in the November 2017 IFRIC Update.

Deloitte comment letter on tentative agenda decision on IFRS 15 — Revenue recognition in a real estate contract that includes the transfer of land

29 Jan, 2018

We have commented on the IFRS Interpretations Committee's publication in the November 2017 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the application of the revenue recognition requirements of IFRS 15 to a contract for the sale of land and a building in which title to the land irrevocably transfers to the customer at contract inception, with the building subsequently constructed on that land.

Deloitte comment letter on tentative agenda decision on IFRS 15 — Right to payment for performance completed to date

29 Jan, 2018

We have commented on the IFRS Interpretations Committee's publication in the November 2017 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the application of the revenue recognition requirements of IFRS 15 to a contract for the sale of a unit in a residential complex which the customer can cancel during construction and is then liable to pay any shortfall between the original sales price and a price achieved on resale of the unit to a new customer.

Video summary of IPSASB consultation paper on accounting for revenue and non-exchange expenses

10 Jan, 2018

In August 2017, the International Public Sector Accounting Standards Board (IPSASB) published a consultation paper on potential recognition and measurement approaches for revenue and non-exchange expenses. The IPSASB has now released a short video highlighting the concepts, proposals and IPSASB preliminary views contained in the consultation paper.

FRC publishes Strategy for 2018/21

19 Dec, 2017

The Financial Reporting Council (FRC) has published its three year strategy for 2018/21 and its draft budget and levy proposals for the 2018/19 financial year.

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