Revenue – Are you prepared for IFRS 15?

Revenue – Are you prepared for IFRS 15?

Our detailed guidance , insight and analysis will help you transition successfully to the new standard.

Beth Zhang


KPMG in China


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KPMG IFRS revenue topic image: colourful shopping bags in cobbled street

It’s time to engage with the new revenue standard.

Implementing IFRS 15 may be lengthy and complex so now is the time to start transition to the new standard. 


“For many organisations, the new standard will have a broad impact – not just changing the amounts and timing of revenue, but requiring an overhaul of the core systems used to produce the numbers.”

Prabhakar Kalavacherla,
KPMG’s global IFRS revenue recognition leader

What's in the new IFRS 15?

The final standard includes clarifications and further examples on how to apply certain aspects of the five-step recognition model, as well as additional practical expedients to apply on transition.

Almost all companies are affected by IFRS 15, but if you are in the telecom, software, engineering, construction or real estate industries, then you are likely to see more significant changes.


“If you haven’t yet engaged with IFRS 15, then it’s time to assess the extent of the impact, so that you can address the wider business implications – and meet the expectations of your stakeholders and regulators.”

Brian O’Donovan,
KPMG’s global IFRS revenue recognition deputy leader


Our First Impressions publication has been fully revised and updated to provide a digestible introduction to the clarified version of IFRS 15. The second edition of our Issues In-Depth guide gives our detailed analysis.

IFRS 15: Key facts

  • A five-step model is applied to determine when to recognise revenue, and at what amount.
  • Revenue is recognised when (or as) a company transfers control of goods or services to a customer at the amount to which the company expects to be entitled.
  • Depending on whether certain criteria are met, revenue is recognised either over time, in a manner that best reflects the company’s performance, or at a point in time, when control of the goods or services is transferred to the customer.

You need to decide how to transition

The new effective date is 1 January 2018. Decisions need to be made soon on which transition approach to adopt – retrospective or cumulative effect.

Our updated publication, Revenue – Transition options, can help you understand the best option for your business. In the meantime, consider which transition approach other companies in your industry might select: retrospective application is likely to be challenging despite the practical expedients available. 

Where can you learn more?

Our IFRS – Revenue hot topics page presents our latest thinking on the new revenue standard, along with our commentary on emerging implementation issues.

This web article is also available in print-friendly format.

Read our updated First Impressions and Accounting for revenue is changing for a digestible introduction to the clarified version of the new standard and its possible impacts for your business.

A fully revised edition of our Issues In-Depth provides our detailed analysis, pooling the insights and experience of our revenue recognition teams globally to guide you through the requirements of the new standard.

It illustrates the main points with industry-specific examples and explains our emerging thinking on key interpretative issues.

It also addresses the question ‘how does this compare with my current accounting?' by including comparisons with current IFRS and US GAAP requirements.

We will continue to update and re-issue our series of industry-specific publications, looking at what the new standard could mean for a range of different sectors.

You may also find our Guide to annual financial statements – IFRS 15 supplement (1.6MB) helpful.

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