IFRS 15 Revenue from contracts with customers
IFRS 15 Revenue from Contracts with Customers provides a single, principles-based five-step model that should be applied to determine how and when to recognise revenue from contracts with customers. The standard was published in May 2014 and is effective from 1 January 2018.
Full text standard
IFRS 15 Issued Standard
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IFRS 15 summary and timeline
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Related IFRIC interpretations
- IFRIC 12 Service Concession Arrangement
Accounting guidance for arrangements where a contract is granted for the supply of public services such as roads. - SIC 32 Intangible Assets – Website Costs
SIC 32 addresses the appropriate accounting treatment for costs at each stage of the development of a website.
UK reduced disclosures – FRS 101
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.
Amendments to the standard for FRS 101 preparers
FRS 101 Appendix II: Note on legal requirements, it is clarified that Schedule 1 to the Regulations requires particulars of turnover to be disclosed irrespective of any exemptions to IFRS 15.
Disclosure exemptions for FRS 101 preparers
The reduced disclosure framework states that a qualifying entity is exempt from many of the disclosure requirements of IFRS 15, including:
- disaggregation of revenue, subject to Schedule 1 (see above);
- qualitative and quantitative information related to changes in contract assets and contract liabilities; and
- information about an entity's performance obligations, transaction prices and any significant judgements.
ICAEW guidance and commentary
Factsheets
Revenue from contracts with customers
Financial Reporting Faculty, November 2016
This exclusive factsheet for Financial Reporting Faculty members answers some key frequently asked questions about the standard.
Online guides and FAQs
Modifications to revenue recognition under IFRS 15
Financial Reporting Faculty, February 2021
A guide to the accounting implications of changes to contracts with customers as a result of the pandemic.
Webinars
Contract modifications under IFRS
Financial Reporting Faculty, December 2020
Explore the accounting implications of contract modification scenarios relating to revenue, financial instruments, leases and employment contracts.
eBooks
Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.
Revenue đź”’
EY, International GAAP 2020 (2020)
The latest edition of this comprehensive guide offers a global perspective and explanations of complex technical accounting issues to help practitioners interpret and implement IFRS. It contains worked examples and illustrations from published financial reports of major listed companies from around the world. This chapter discusses IFRS 15, alongside separate chapters on identifying the contract and performance obligations; determining and allocating the transaction price; recognition; licences, warranties and contract costs; presentation and disclosure.
Revenue recognition: understanding and implementing the new standard đź”’
Joanne M.Flood (2017)
Provides an overview of the new revenue recognition standard and step-by-step instructions for finance professionals navigating through the new model, with numerous examples along the way.
If you have any difficulties using these eBooks, please see our Help and support advice or contact library@icaew.com.
Example accounts
IFRS model accounts and disclosure checklists
Online disclosure checklists, general IFRS illustrative statements and compliance questionnaires collected by the ICAEW Library.
Company Reporting (Croner-i)
The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. Company Reporting analyses current IFRS disclosures from public companies, organised by industry sector. It also provides detailed monthly Common Practice reports on specific issues.
Contact us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com to get any documents from Company Reporting.
External resources
Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.
International GAAP 2022: Generally Accepted Accounting Practice under IFRS
EY International Financial Reporting Group, 2022
Detailed guide on interpreting and implementing IFRS, with illustrative examples and extracts from financial statements. The manual is available online (free registration required) as part of EY Atlas Client Edition. Chapters and sections are searchable and downloadable in PDF format. The whole book is also downloadable in ePub format for offline access.
A closer look at IFRS 15, the revenue recognition standard
EY, October 2021
Updated guide presenting key issues, disclosure checklists, and illustrative examples. Sections cover identifying the contract with the customer, performance obligations, transaction price, licences of intellectual property, and presentation and disclosure.
IFRS 15 Thematic Review: Review of Disclosures in the First Year of Application
FRC, October 2019
Report with excerpts of published accounts illustrating good examples of disclosure and the FRC's key findings on transition to IFRS 15, accounting policies, disclosure of significant judgements, revenue disaggregation, contract, balances and contract costs.
IFRS 15 Thematic Review: Review of Interim Disclosures in the First Year of Application
FRC, November 2018
Report summarising the FRC's findings with excerpts of published interim accounts illustrating good examples of disclosure, main issues where disclosures could be improved, and key points to consider. The report discusses the detailed findings on changes in accounting policies, transition adjustments, performance obligations, significant judgements, balance sheet accounts, revenue disaggregation, and comparability of amounts presented.
Further reading
Manuals and handbooks
The ICAEW Library stocks the latest IFRS handbooks and manuals. You can browse all our books on IFRS 15, revenue recognition and revenue from contracts with customers or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com
Insights into IFRS 2020–21
KPMG, Sweet and Maxwell, 2020
Manual providing practical guidance with an emphasis on the real-life application of IFRS, with examples based on actual questions that have arisen in practice around the world.
Wiley IFRS 2020: Interpretation and application of IFRS standards
PKF, Wiley, 2020
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.
Manual of accounting: IFRS supplement 2020
PwC, LexisNexis, 2019
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS.
Perspectives on IFRS 15
J.Bowyer, Wolters Kluwer, 2017
Accountants Digest setting out the key requirements and issues people are thinking about around IFRS 15, as well as giving examples of what has already been discussed.
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