Cover note (Agenda Paper 6)

The comment period for the request for information Post-implementation Review—IFRS 15 Revenue from Contracts with Customers (IFRS 15 RFI) ended on 27 October 2023.

This paper introduced the papers for this meeting and provided a reminder of the IASB’s framework for deciding whether and when to take further action in response to specific application matters. It was therefore not discussed.

Other matters (Agenda Paper 6A)

This paper summarised the feedback, staff analysis and staff recommendations on matters raised by respondents on Question 11 Other matters of the RFI that have not been covered in the February-April 2024 IASB meetings.

Staff recommendation

The staff recommended that the IASB take no further action on application matters related to:

• allocating the transaction price to performance obligations; and
• other aspects of applying IFRS 15 described in Appendix A of this paper.

IASB discussion

IASB members had a brief discussion and they acknowledged that judgement is required to estimate the stand-alone selling price. It is sometimes challenging for the preparers to make this judgement. However, they alluded that they cannot eliminate this judgment by adding additional illustrative guidance in the standard.

IASB decision

All IASB members agreed with the staff recommendations.

Academic literature review update (Agenda Paper 6B)

At its March 2023 meeting, the IASB discussed an overview of the academic literature relevant to the IFRS 15 PIR. Key messages from the March 2023 paper are included in Appendix A of this paper.

This paper provided a summary of the additional academic literature relevant to the PIR identified since the initial review. This summary was bifurcated into key messages and detailed research findings. The IASB members were they have any questions or comments on the updated review of academic literature summarised in this paper.

IASB discussion

Only a few IASB members raised comments on the updated academic literature. One IASB member commented that although respondents said that there was a high cost to implement IFRS 15, the high cost is mainly because management was not aware of their products and services before IFRS 15 was published and therefore they had to incur costs to identify these and implement systems and procedures resulting in improved internal controls. Therefore, the cost is not entirely related to the implementation of IFRS 15.