Monday, April 4th, 2016
Amendments to the revenue standard—IFRS 15
The IASB issued an amendment to the revenue Standard, IFRS 15 Revenue from Contracts with Customers, formalising the deferral of the effective date by one year to 2018. The publication of the amendment, Effective Date of IFRS 15, follows from the IASB’s decision in July to defer the effective date from 1 January 2017 to 1 January 2018, having considered the feedback to its consultation.
Companies applying IFRS continue to have the option to apply the Standard early. The main reason for the amendment is that the IASB is currently consulting on some proposed clarifications to the Standard. These proposals follow discussions within the Revenue Transition Resource Group (TRG). The TRG was established by the IASB and the US Financial Accounting Standards Board (FASB) after the Standard was issued in May 2014 to support companies in its implementation.
Consultation on the proposed clarifications ends on 28 October 2015. The IASB expects to complete its discussions on the clarifications in the light of the feedback received by the end of 2015, after which any final amendments to the Standard will be issued.
Proposed clarifications to and transition reliefs for IFRS 15 Revenue from Contracts with Customers
The proposed targeted amendments follow discussions at meetings of the Transition Resource Group (TRG), which was set up jointly by the IASB and the FASB to support companies in implementing the new revenue Standard after it was issued in May 2014. The Exposure Draft proposes to clarify:
In addition, the IASB proposes two reliefs to aid the transition to the new revenue Standard. The consultation is open for comment until 28 October 2015. The IASB expects to complete its discussions on these issues by the end of 2015, after which the final amendments to the Standard will be issued.