In May 2014, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), jointly issued a new revenue standard - IFRS 15, Revenue from Contracts with Customers, and Topic 606, Revenue from Contracts with Customers.
In May 2014, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), jointly issued a new revenue standard - IFRS 15, Revenue from Contracts with Customers, and Topic 606, Revenue from Contracts with Customers. After issuing the standard, the IASB and the FASB formed the Transition Resource Group (TRG) for revenue recognition to support the implementation of the standard.
The TRG has met five times and discussed about 73 issues. Additionally, many stakeholders represented that the new revenue standard has far reaching impacts and that additional time is required to develop accounting policies, update information technology systems, and change processes and internal controls. The substantial majority of the issues discussed by the TRG have been resolved without standard setting.
On 22 July 2015, the IASB confirmed a one year deferral of the effective date of IFRS 15. This decision is consistent with that of the FASB’s decision on 9 July 2015 for a one year deferral of the new revenue standard.
Based on the discussions with the TRG, on 30 July 2015, the IASB published for public consultation proposed clarifications with respect to the following topics:
The IASB’s deadline for receiving comments is 28 October 2015.
This issue of IFRS Notes provides an overview of key clarifications proposed by the IASB to IFRS 15 and also highlights what the FASB is proposing to do in these areas.
To access the text of the IASB announcement, please click here.
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.