Friday, July 7th, 2023
The International Accounting Standards Board (IASB) is currently inviting stakeholders to provide feedback, which will be utilized in its evaluation of the IFRS 15 Accounting Standard for revenue from contracts with customers.
Jointly established by the IASB and the US Financial Accounting Standards Board, IFRS 15 took effect in 2018. The standard was designed to enhance the consistency and quality of revenue information available to global investors.
IFRS 15 implemented a robust, comprehensive framework governing the recognition, measurement, and disclosure of revenue. Applicable to a variety of transactions and industries, it established a single, cohesive method for recognizing and measuring revenue, enabling investors to gain useful insights regarding the nature, amount, timing, and uncertainty of revenue and cash flows generated from a company’s customer contracts.
The IASB is now conducting its routine post-implementation review (PIR) for the Accounting Standards, during which it will evaluate whether the standard’s requirements have been successfully implemented as intended.
IASB Chair, Andreas Barckow, has expressed encouragement for stakeholders to share their experiences, specifically focusing on the understandability of the standard and the costs and benefits associated with its application.
A PIR does not necessarily result in the setting of new standards. Once stakeholder feedback has been reviewed and evidence from outreach and research activities has been gathered, the IASB will decide on the necessity and timeline of potential standard-setting. The Request for Information Post-implementation Review of IFRS 15 Revenue from Contracts with Customers is open for comment until 27 October 2023.
For a detailed overview of our comprehensive IFRS 15 workshops, please visit the following link: IFRS 15 Revenue Recognition Workshop (2 Days)