IFRS 15: Revenue from contracts with customers

A new standard for revenue, based on a transfer of control model, which fundamentally changes the basis of revenue recognition, presentation and disclosure

Preparing for change

International Financial Reporting Standard 15 (IFRS 15), the new standard for revenue recognition, establishes a new framework for assessing contracts with your customers, focusing on the transfer of control of identified performance obligations. The new standard was developed to address concerns that existing IFRS guidance provides limited information about complex areas of revenue recognition. The framework provides a single model for all goods and services across all industries.

"It’s important for companies to understand the changes and evaluate the impact on their financial reporting. Revenue is a key performance indicator, and you need to be prepared to communicate the impact of the new guidance to your investors and other stakeholders."

- Paul Feetham, Partner, Accounting Advisory Services, Toronto

Flexible solutions to accelerate your transition
 

Global and industry insights

Being able to use global insights from companies around the world that are implementing this standard will help you develop robust policies and consider industry trends in implementation of the new guidance. Getting access to industry-specific insights will give you confidence in your decisions.

Implementation methodology

Developing a methodology for grouping your contracts, assessing risk and performing contract reviews will allow you to achieve a more efficient implementation and avoid unnecessary effort and duplication of work. A robust methodology will also enable you to develop documentation to support your audit process.

Sustainable business solutions

Initial adoption may be achieved through short-term fixes - but we can help you design and develop an accounting procedure, processes and controls that you can take forward as part of your ongoing compliance with IFRS 15. You'll enjoy a sustainable solution that will build long-term efficiencies and effectiveness into your ongoing financial reporting system.

It’s imperative to get ahead

Given that revenue is such a vital performance indicator for external stakeholders and investors, it's imperative for businesses to understand fully how this standard may change the revenue line. Getting ahead of those changes and communicating them in advance to your investors will help you manage expectations and avoid surprises.

How can we help?

Companies that are already working through their IFRS 15 implementation have indicated that it can be a complex and time-consuming process. We can guide you through this journey by combining our global insight, practical experience and technical expertise.

Related insights

Contact us

Paul Feetham
Partner, Accounting Advisory Services, Toronto
Tel: +1 416 365 8161
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Rebecca Vass
Director, Accounting Advisory Services, Toronto
Tel: +1 416 687 8900
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Christophe Gautier
Partner, Accounting Advisory Services, Montreal
Tel: +1 514 205 5279
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David Whiteley
Partner, Accounting Advisory Services, Calgary
Tel: +1 403 509 6653
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