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 & Information Service also holds print versions of the IFRS standards. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


*Not UK endorsed as at 23 June 2021. Read more on UK endorsement of IFRS standards. Not EU endorsed as at 23 June 2021. Read more on EU endorsement of IFRS standards.

Related IFRIC interpretations

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

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

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, 16 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, 1 February 2021
A guide to the accounting implications of changes to contracts with customers as a result of the pandemic.

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
Financial Reporting Faculty, 6 August 2018

Articles

IFRS 15: A progress report
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
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
Phil Barden, By All Accounts, July 2016
Phil Barden discusses the implications of the recent clarifications to IFRS 15.

Is everything clear now?
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
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
Phil Barden, By All Accounts, July 2014
A look at some potential impacts of the IASB's new revenue recognition standard.

Webinars

Contract modifications under IFRS
Financial Reporting Faculty, 17 December 2020
Explore the accounting implications of contract modification scenarios relating to revenue, financial instruments, leases and employment contracts. 

IFRS Update June 2018
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?
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
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
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
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 🔒
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 🔒
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.

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.

A closer look at IFRS 15, the revenue recognition standard
EY, October 2020
Updated guide presenting key issues, disclosure checklists, illustrative examples and addresses application issues for entities that have already adopted the standard. Sections cover performance obligations, transaction price, licences of intellectual property, 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.

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. 


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. 

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


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.