TIAG perspectives on IFRS 15: Accounting for mobile contracts through the 'indirect' channel

IFRS 15, Revenue from Contracts with Customers, (the Standard) will have a profound impact on the way in which the Communications industry measures and reports revenue. The industry is currently assessing the impact of the Standard on its current revenue recognition policies. Operators also have major change and implementation programmes in progress reflective of the impact this Standard will have on accounting, systems and the processes of the business.

In this series of papers we will set out some of the aspects of the Standard that require consideration by Communications businesses, including practical implementation considerations. This third instalment of the series considers accounting for mobile contracts through the indirect channel. 

Mobile operators have many routes to market. Sometimes these are referred to as the direct channel (through the operators’ own shops or websites) and the indirect channel (through independent dealers).