EFRAG issues endorsement advice on Clarifications to IFRS 15
06 Jul, 2016
The European Financial Reporting Advisory Group (EFRAG) has issued its endorsement advice letter to the European Commission 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 Clarifications and recommends their endorsement. EFRAG’s assessment is that the Clarifications 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 Clarifications are likely to outweigh the associated costs to implement them
EFRAG has also updated its endorsement status report to reflect the issuance of the endorsement advice.
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