Recently, the International Accounting Standards Board and the Financial Accounting Standards Board of US jointly issued a converged revenue standard.  International Financial Reporting Standards 15, Revenue from Contracts with Customers, is effective January 1, 2017.

IFRS 15 replaces the following standards and interpretations:

• IAS 11 Construction Contracts
• IAS 18 Revenue
• IFRIC 13 Customer Loyalty Programmes
• IFRIC 15 Agreements for the Construction of Real Estate
• IFRIC 18 Transfers of Assets from Customers
• SIC-31 Revenue – Barter Transactions Involving Advertising Services

Philippine Financial Reporting Standards (PFRS) in the Philippines are adopted from the IFRS.  IFRS, when used in this article, also pertains to PFRS as used in the Philippine setting.

IFRS 15 introduces a core principle in recognizing revenue in a five-step model framework:

• Identify the contract(s) with a customer
• Identify the performance obligations in the contract
• Determine the transaction price
• Allocate the transaction price to the performance obligations in the contract
• Recognise revenue when (or as) the entity satisfies a performance obligation.

Currently, copies of the IFRS 15 can be freely downloaded by subscribers of eIFRS.  eIFRS subscription costs £218.00 for one year from the IFRS Foundation Online Shop.  Subscription allows subscriber to have  immediate online access to International Financial Reporting Standards (IFRSs) including International Accounting Standards (IASs), Interpretations (IFRICs/SICs) and any revisions just as soon as they are available. To access eIFRS subscription page, Click Here.

Members of this website can download the standard, the basis for conclusion and the illustrative examples for FREE! Just register and log-in before you download.  You can log-in using your facebook account.

• IFRS 15 Revenue from Contracts with Customers (Standard)
• IFRS 15 Revenue from Contracts with Customers – Basis for Conclusion
• IFRS 15 Revenue from Contracts with Customers – Illustrative Examples

To read the summary of IFRS 15, read our article on IFRS 15 – Revenue from Contracts with Customers (final revenue standard).

Webcasts and articles related to IFRS 15 were also offered in the web for online users, sponsored by EY.  To learn more, please go to http://www.ey.com/IFRS.

Other references for you to know more of IFRS 15:

• IASB’s Article on IASB and FASB issue converged Standard on revenue recognition
• Delloite Article on IFRS 15 – Revenue fro Contracts with Customers
• EY’s article on IASB and FASB issue new revenue recognition standard — IFRS 15