IASB proposes clarifications to IFRS 15
9 September 2015
This edition outlines the proposed clarifications to IFRS 15 Revenue from Contracts with Customers set out in the recent exposure draft ED/2015/6 Clarifications to IFRS 15 (the “ED”) which was issued in July 2015 for public comment.
The IASB proposes clarifications to IFRS 15 which, if finalised, will clarify guidance in the following areas:
- Identifying performance obligations;
- Principal versus agent considerations; and
- Licensing application guidance.
- Plans call for two additional practical expedients to be added to the transition requirements for:
─ Contract modifications that occurred prior to the beginning of the earliest year presented upon initial adoption of IFRS 15; and
─ Contracts that were completed as at the beginning of the earliest year presented (when the full retrospective method is applied).
The IASB did not propose an effective date for the proposed amendments. However, plans call for early application to be permitted.
Comments on the proposals are due by 28 October 2015.