Most accounting changes never come to the attention of the CEOs or operational management – instead they’re dealt with by specialist accounting professionals or perhaps the CFO. But the new IFRS15 accounting standard on revenue recognition, published jointly by the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB), is an exception. Due to start coming to force from the start of 2018, IFRS15 significantly changes mobile operators’ long-standing practice of quietly using customers’ service plan charges to subsidise the up-front costs of their handsets. As you already know, it brings profound implications for communications companies’ operations, with knock-on effects on areas from pricing to marketing to sale incentives. And while the looming deadline set for the introduction of the new standard is a date that no operator can afford to miss, many have yet to start their compliance programmes. Have you started your compliance programme?
Global TMT Leader, PwC China
Tel: +86 755 8261 8886