Currently, IFRS consists of two principles-based standards, IAS 18 Revenue and IAS 11 (Construction Contracts) and three IFRS Interpretations. These were criticised for failing to provide adequate guidance on application – they have been described as ‘vague and inconsistent’. The IASB and the US Financial Accounting Standards Board (FASB) collaborated on a project to develop improved, converged standards for revenue recognition.
Preparers must develop a policy for measuring the amount and timing for recognising revenue for goods and services. Revenue is a key performance indicator that drives the recognition of expenses and profits and valuation of an entity.
The IASB’s standard, IFRS 15 is mandatory for periods beginning on or after 1 January 2018 with early application permitted.
This course will focus on the requirements of the new standard IFRS 15.Download Brochure here