Deloitte comment letter on tentative agenda decision on IFRS 15 — Revenue recognition in a real estate contract that includes the transfer of land

Published on: 29 Jan 2018

We have commented on the IFRS In­ter­pre­ta­tions Committee's pub­li­ca­tion in the November 2017 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clar­i­fi­ca­tion on the ap­pli­ca­tion of the revenue recog­ni­tion re­quire­ments of IFRS 15 to a contract for the sale of land and a building in which title to the land irrevocably transfers to the customer at contract inception, with the building subsequently constructed on that land.

We agree with the IFRS In­ter­pre­ta­tions Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision; however, we recommend a change to the wording related to ‘transformative relationship’.  

Download the full comment letter below.


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