This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Conduct Committee findings in relation to accounting under IAS 18

  • FRC Image

30 Sep 2015

The Financial Reporting Council (FRC) has issued a press release of the findings of its Conduct Committee stemming from the review of the annual reports and accounts of blur Group plc ("the company").

The principal issues included:

  • whether the company was principal or agent in relation to the outsourcing services it provided;
  • whether revenue was recognised only when there was sufficient evidence to conclude that the stage of completion could be assessed reliably and when it was probable that economic benefits would be received in accordance with IAS 18 Revenue; and
  • whether the strategic report gave a fair and balanced analysis of the company’s performance.

The Conduct Committee press release serves as a reminder that revenue recognition is a continued area of focus for the Conduct Committee and it can present a number of challenges for companies to consider.  It also highlights that entities should review arrangements carefully to determine whether they are principal or agent as this can significantly affect both the amount of revenue to be recognised and, potentially, when that revenue should be recognised. 

Please click here for the full press release on the FRC’s website.

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.