European Union formally adopts IFRS 15
31 Oct 2016
The European Union has published a Commission Regulation endorsing IFRS 15 'Revenue from Contracts with Customers'. IFRS 15 specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single, principles based five-step model to be applied to all contracts with customers.
Commission Regulation (EC) No 2016/1905 of 22 September 2016 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council published in the Official Journal on 29 October 2016 adopts IFRS 15 Revenue from Contracts with Customers issued by the IASB in May 2014. The EU effective date is the same as the IASB's revised effective date (annual periods beginning on or after 1 January 2018 with earlier appication permitted).
As a result of the EU's adoption, the EFRAG has updated its endorsement status report.