IFRS industry insights: Real Estate Sector

The International Accounting Standards Board (IASB) has published a new Standard, IFRS 15 Revenue from Contracts with Customers (‘the new standard’). The new Standard outlines  a single  comprehensive  model of accounting for revenue arising  from contracts with customers  and supersedes  current revenue recognition  guidance, which is found  currently  across several Standards  interpretations with IFRSs.

The core principle  is that an entity  recognises  revenue to reflect the transfer of goods  or services , measured as the amount to which the entity  expects to be entitled  in exchange  for those  goods  or services. However the new Standard  does  not apply  to transactions  that are  instead within the scope  of leasing standard.