Valid from the 1st of January, 2018
The new revenue recognition standard
IFRS 15 is the result of the joint project initiated by the IASB (International Accounting Standards Board) together with the FASB (Financial Accounting Standards Board), the national standard setting body of the United States. The final standard was issued in May 2014 with a mandatory effective date of 1 January 2018.
FRS 15 Revenue from Contracts with Customers supersedes all previous requirements relating to revenue recognition under IFRS. The purpose of the new revenue recognition standard is to eliminate inconsistencies in the current revenue standards and establish a single methodology for recognising revenue. IFRS 15 introduces a 5-step model that assists entities in identifying the subject matter of the contracts they entered into, and how revenue should be recognised on this basis. In addition, it also specifies the disclosures to be made in connection with revenues in the notes to the financial statements.
The adoption of the standard will be mandatory as of 1 January 2018 for all entities which prepare IFRS financial statements or adopt IFRS accounting.
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