IFRS 15 Compliance
IFRS 15 Overview
IFRS 15 is the new revenue recognition standard from the The International Accounting Standards Board (IASB), replacing IAS 18 and IAS 11.
What does it mean for my business?
IFRS 15 outlines a framework for businesses to use when accounting for revenue arising from contracts with customers. Under the standard, businesses must report on the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract. IFRS 15 also outlines a new set of disclosure requirements related to revenue recognition.
What is IFRS 15 compliance?
To stay IFRS 15 compliant and within the rules and regulations, finance and audit teams require software that helps them include five key things in their financial reports. If that’s you, you’ll need to:
- Identify contracts with customers
- Identify performance obligations
- Determine the transaction price
- Allocate the transaction price to the performance obligations
- Recognize revenue as an entity satisfies the performance obligations