ICAEW.com works better with JavaScript enabled.

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

Unaccompanied version of IFRS 15
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

IFRS 15 summary and timeline

Looking for the synopsis? Our IFRS 15 summary and timeline are now on a separate page, featuring information on current proposals and a timeline of IASB updates.

Which version of the standard?

Financial Reporting Faculty members have unlimited online access to the consolidated edition of IFRS and amendments through the IASB's eIFRS service. Please log into eIFRS to access electronic versions of the standards. Or find out more about how to join the faculty.

The ICAEW Library also offers members and students access to the print versions of the latest IFRS Blue and Red Books. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


UK reduced disclosures

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

The following items in FRS 101 Appendix II: Note on legal requirements have been added in order to address United Kingdom company law requirements.

  • That entities applying either Schedule 2 or Schedule 3 to the Regulations may not take advantage of the option in IAS 27 Separate Financial Statements to account for investments in subsidiaries, joint ventures and associates using the equity method.
  • A systematic manner for the presentation of notes to the financial statements shall be adhered in accordance with Schedule 1 to the Regulations when determining the presentation requirements of IAS 1.
  • Schedule 1 to the Regulations requires particulars of turnover to be disclosed irrespective of any exemptions to IFRS 15.

Disclosure exemptions

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 πŸ”’
Financial Reporting Faculty, 16 November 2016
This exclusive factsheet for Financial Reporting Faculty members answers some key frequently asked questions about the standard.

Annual factsheets

These exclusive factsheets, produced annually by the Financial Reporting Faculty for its members, highlight all new and modified requirements for preparers of IFRS accounts. Each annual edition focuses primarily on new requirements with mandatory application for preparers with periods beginning on or after 1 January of that year.

2018 IFRS Accounts πŸ”’
Financial Reporting Faculty, 6 August 2018

2017 IFRS Accounts πŸ”’
Financial Reporting Faculty, 30 April 2018

2016 IFRS Accounts πŸ”’
Financial Reporting Faculty, 30 January 2017

Articles

IFRS 15: A progress report πŸ”’
Danielle Stewart, By All Accounts, January 2018
From the Financial Reporting Faculty's magazine, Danielle Stewart discusses some of the issues experienced by those already implementing this standard.

The final countdown πŸ”’
Phil Barden, By All Accounts, July 2017
Phil Barden, a partner at Deloitte, provides some top tips for entities preparing to implement IFRS 15.

Revenue recognition: a stable platform πŸ”’
Phil Barden, By All Accounts, July 2016
Phil Barden discusses the implications of the recent clarifications to IFRS 15.

Is everything clear now? πŸ”’
Raghava Tirumula, By All Accounts, January 2016
Raghava Tirumula, a technical manager at the IASB, highlights proposed clarifications to the IASB's new revenue recognition standard.

Five steps to danger πŸ”’
Phil Barden, By All Accounts, January 2015
Why implementing the IASB's new revenue recognition standard could be a significant logistical challenge.

Hot off the press- the IASB's new revenue recognition standard πŸ”’
Phil Barden, By All Accounts, July 2014
A look at some potential impacts of the IASB's new revenue recognition standard.

Webinars

IFRS Update June 2018 πŸ”’
Financial Reporting Faculty, 19 June 2018
This webinar provides a summary of new and revised standards applicable in 2018 and beyond. It looks at the lessons we can learn from those already implementing IFRS 9 and IFRS 15, the impact of IFRS 16 on 2018 financial statements, IFRS 17 for those who are not insurers, and other IFRS amendments and new IFRICs.

Transition to IFRS 15 - are you ready? πŸ”’
Financial Reporting Faculty, 1 May 2018
This webinar for Financial Reporting Faculty members looks at what preparers should be doing now to ensure they are ready for the new standard and highlights some common examples of transition issues. It will be particularly helpful for those at an early stage in their transition process or simply in need of a helping hand.

IFRS 15 Revenue from contracts with customers - putting theory into practice πŸ”’
Financial Reporting Faculty, 23 March 2017
This webinar for Financial Reporting Faculty members provided a brief reminder of the standard’s key requirements before focusing on practical issues and implementation challenges.

Getting to grips with IFRS 15's revenue recognition requirements πŸ”’
Financial Reporting Faculty, 20 November 2015
This webinar for Financial Reporting Faculty members provides an overview of the key requirements of IFRS 15 Revenue from Contracts from Customers and how they will affect you. Topics covered include the new 'five step' approach, determining whether revenue should be recognised at a point in time or over time, capitalising contract costs and application guidance.

The new IFRS on revenue recognition πŸ”’
Financial Reporting Faculty, 9 September 2014
This webinar for Financial Reporting Faculty members provided an overview of the new standard and how it will affect you, covering the new 'five step' approach to recognising revenue, key differences from current practice, recognising revenue over time, multiple element arrangements and practical issues.


eBooks

Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.

Revenue recognition: understanding and implementing the new standard πŸ”’
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. 

IFRS 2018: Interpretation and application of IFRS standards πŸ”’
PKF (2018)
This Wiley guide has been fully updated to help practitioners apply and comply with the latest international financial reporting standards. The chapter on revenue from contracts with customers covers:

  • The revenue model
  • Contract cost
  • Presentation
  • Disclosure
  • Specific transactions
  • Example of financial statement disclosures

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.

IFRS: Revenue recognition
Collection of publications from EY looking at IFRS 15, including industry-specific guides. Sectors covered include insurance, asset management, telecommunications, life sciences, mining, utilities, oil and gas.

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.

Disclosures required in interim financial statements on the initial adoption of IFRS 15
PwC, July 2018
Bulletin highlighting who may be impacted and suggested disclosures.

Presentation and disclosure requirements of IFRS 15
Detailed guide from EY, updated in July 2018. The guide looks at changes to the current IFRS, presentation within primary financial statements, disclosure within the notes to the financial statements, disclosures in interim financial statements, transition disclosures. It also includes a disclosure checklist.

A closer look at the new revenue recognition standard
Detailed guide updated by EY in October 2017 presenting key issues, disclosure checklists and illustrative examples. 

Accounting and financial reporting guide for revenue from contracts with customers (2016 edition)
In-depth guide produced by PwC looking at the implications of the new revenue recognition standard and its impact, with examples and commentary on a wide variety of topics. Updated in September 2016.

Revenue from contracts with customers
Guides from PwC discussing the new revenue recognition model. Supplements cover the impact of IFRS 15 on different industry sectors, including construction, pharmaceuticals, energy, entertainment and media, communications and manufacturing.

IASB and FASB issue new revenue recognition standard — IFRS 15
Overview produced by EY in May 2014 describing the five-step model for applying IFRS 15.

IASB issues new standard on revenue recognition
IFRS In Focus bulletin from Deloitte giving an overview of the new revenue model, disclosure and presentation and additional guidance on how the new standard differs from IAS 18. Published May 2014.


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

International GAAP 2019
EY, Wiley, 2019
Comprehensive reference guide to interpreting and implementing IFRS, featuring detailed analysis of technical accounting issues accompanied by worked examples and illustrations taken from the actual financial statements of companies that report under IFRS.
Request this book

Manual of accounting: IFRS for the UK 2019
PwC, Tolley, 2018
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS. This manual was published in November 2018 and includes key updates from amendments, annual improvements and the revised conceptual framework issued in March 2018.
Request this book

Insights into IFRS 2018–19
KPMG, Thomson Reuters, 2018
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. This book deals with standards issued by the IASB as at 1 August 2018.
Request this book

iGAAP 2018: A guide to IFRS reporting (Volume A)
Deloitte, Croner-i, 2018
Practical and comprehensive guidance for entities currently reporting under IFRS and those considering whether to move to IFRS in the near future. This manual deals with standards issued by the IASB as at 1 September 2017.
Request this book

GAAP 2018: UK reporting - IFRSs (Volume C)
Deloitte, Croner-i, 2018
Comprehensive manual explaining how to apply IFRS, focusing on practical implementation issues with commentary and analysis of issues specific to UK companies. This volume deals with standards issued by the IASB as at 1 September 2017.
Request this book

Wiley IFRS 2018: Interpretation and application of IFRS standards
PKF, Wiley, 2018
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.
Request this book

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.
Request this book

Articles

The ICAEW Library subscribes to over 160 current journals and magazines, as well as offering access to 1,800 key UK and international business, management and trade titles online. You can browse articles on IFRS 15, revenue recognition and revenue from contracts with customers or request any of the selected articles below by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Transition to IFRS 15
G.Ryltsova, Accountancy, September 2016
The new revenue recognition standard comes into force in 2018. This article provides tips for transition.

Countdown to IFRS 15
A.Davies, Accountancy, March 2015
We are embarking on a period of frenetic activity in UK financial reporting, one that is likely to put significant strain on finance teams as the consequences of change, research, learning, headaches and solutions, all add their weight to business as usual. The combination of new UK GAAP transition at entity level, with its myriad competing priorities, and new International Financial Reporting Standards (IFRS) at group level, such as IFRS 15, Revenue from Contracts with Customers, and further down the track, IFRS 9, Financial Instruments, and possibly IAS 17, Leases, is going to keep those in finance leading one-off change projects until at least 2018.

The revenue nouveau est arrive!
World Accounting Report, June 2014
More than 10 years in the making, the joint IASB/FASB standard, IFRS 15 'Revenue from Contracts with Customers' has been published. The standard is the most significant product of the convergence process in terms of its potential to affect financial reporting, even if lease accounting may eventually run it a close second.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email, post or fax.


Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your IFRS questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250. 

Find out more about the Technical and ethics advisory helpline, including our opening hours.


Can't find what you are looking for?

If you're having trouble finding the information you need, ask the Library & Information Service. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

* Some of the content on this web page was provided by the Chartered Accountants’ Trust for Education and Research, a registered charity, which owns the library and operates it for ICAEW.