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The potential impact of the new accounting standard will be huge. Deloitte's Francesco Nagari explains which firms are most exposed and why.

It is not often that firms are given more time to prepare for a new International Financial Reporting Standard (IFRS). However, that’s what has happened with the new IFRS 15 Revenue from contracts with customers, which now has an effective date of 1 January 2018. The one-year reprieve indicates how far-reaching the Standard might be and the impact it may have across several industries.

The insurance industry will not be one of the hardest hit given the intensity of the work carried out on IFRS 4, which scopes out most of the contracts the sector issues with its customers. That said, some parts of the industry need to give careful consideration to the likely impact on revenue recognition and the unbundling of certain contracts.