IFRS 15 Revenue from Contracts with Customers introduces a new revenue recognition model. This will replace the current revenue recognition guidance under the International Financial Reporting Standards (IFRS).
The new requirements will affect different companies in different ways. For some, the new standard will have a significant impact on how and when they recognize revenue. For others, there may be little change in the timing and amount of revenue recognized. Nevertheless, arriving at this conclusion will require an understanding of the new model and an analysis of its application to particular transactions.
The Institute has recommended the adoption of IFRS 15 to the Securities Exchange Commission of Pakistan effective from reporting periods beginning on or after July 1, 2018. As the effective date is around the corner, it is important that companies start evaluating what impact the application of IFRS will have on the financial statements as well as on the business as a whole.
To gear for the mega change, the Institute’s Technical Services Department has compiled a list of useful international guidance material to help you understand and apply IFRS 15.
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We hope this compilation is of benefit to you and we look forward to your feedback.