EFRAG issues draft endorsement advice on clarifications to IFRS 15
17 May, 2016
The European Financial Reporting Advisory Group (EFRAG) has issued for comment its draft endorsement advice for the use of the clarifications to IFRS 15 'Revenue from Contracts with Customers' in the European Union (EU).
In April 2016 the International Accounting Standards Board (IASB) published Clarifications to IFRS 15 'Revenue from Contracts with Customers'. The objective of the amendments is clarify the requirements of the standard in certain areas (identifying performance obligations, principal versus agent considerations and licensing) and provide some transition relief for modified contracts and completed contracts
EFRAG supports the adoption of the amendments and recommends their endorsement. EFRAG’s initial assessment is that the amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.
EFRAG also considers that the overall benefits of the amendments are likely to outweigh the associated costs to implement them.
Comments are requested by 17 June 2016.
EFRAG has also updated its endorsement status report to reflect the issuance of the draft endorsement advice.
The EFRAG press release regarding this, including draft endorsement advice and the invitation to comment, is available on the EFRAG website.
