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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.


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

The new standard is now effective.

“For many organisations, IFRS 15 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

“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


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 mannerthat best reflects the company’s performance, or at a point in time, when control of the goods or services is transferred to the customer.

How to transition

IFRS 15 is effective from 1 January 2018. Decisions should already have been made on which transition approach to adopt – retrospective or cumulative effect. Retrospective application is likely to be challenging, despite the practical expedients available.

Our updated publication, Revenue – Transition options (PDF 407 KB), can help you understand and implement the best option for your business

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.

These are also addressed in IFRS Today – a source of unique and useful insight on the new standards, which you can follow on LinkedIn.

Read our updated First Impressions (PDF 700 KB) and Accounting for revenue is changing (PDF 1.2 MB) for a digestible introduction to the IFRS 15 and its possible impacts for your business.

Our IFRS 15 handbook (PDF  2MB) 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. As your business grows and evolves – whether by developing new products and services, embedding technological innovations or buying new businesses – we hope this handbook will be your go-to resource as you apply IFRS 15 to new facts and circumstances.

Our series of industry-specific publications looks 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 (PDF 2.69 MB)

This web article is also available in print-friendly format (PDF 258 KB).

© 2021 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.

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