Keywords: Mazars, Thailand, IFRS, IASB, IFRS 15, EFRAG. Please read, International Financial Reporting Standards, Revenue from Contracts with Customers — A guide to IFRS 15, Collection of IFRS 15 news and publications, Joint Transition Resource Group for Revenue Recognition, Clarifications to IFRS 15: Issues emerging from TRG discussions, FRC publishes thematic review findings on IFRS 15 and IFRS 16, IAAER grants for research informing the IASB's work, IPSASB extends comment letter deadline for its three recent exposure drafts, ESMA publishes 24th enforcement decisions report, A Roadmap to Applying the New Revenue Recognition Standard (2020), Deloitte comment letter on tentative agenda decision on IFRS 15 — Training costs to fulfil a contract, Deloitte comment letter on tentative agenda decision on IFRS 15 — Compensation for delays or cancellations, A Closer Look — Revenue recognition - evaluating whether an entity is acting as a principal or as an agent, IFRIC 15 — Agreements for the Construction of Real Estate, IFRIC 18 — Transfers of Assets from Customers, SIC-31 — Revenue – Barter Transactions Involving Advertising Services, Project on revenue added to the IASB's agenda, Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2017, IASB defers effective date of IFRS 15 to 1 January 2018. if other standards specify how to separate and/or initially measure one or more parts of the contract, then those separation and measurement requirements are applied first. Step 1: Identify the contract with the customer, A contract with a customer will be within the scope of IFRS 15 if all the following conditions are met: [IFRS 15:9], If a contract with a customer does not yet meet all of the above criteria, the entity will continue to re-assess the contract going forward to determine whether it subsequently meets the above criteria. IAS 18 has been used from December 1993 and will be used until the effective date (January 2018) of IFRS 15. 15 October 2015. Adoption status EU status (as of 1-Feb-20) Page; 1 January 2020. [3] The IASB also believed that its guidance for revenue was not sufficiently detailed. Revenue recognition is a critical accounting area, and companies can't afford to get it wrong. As the effective date of January 1, 2018 draws near, many businesses have initiated the process of analyzing the effects of the new revenue recognition standard, IFRS 15: Revenue from Contracts with Customers. ‘success fees’ paid to agents). the entity has a present right to payment for the asset; the customer has legal title to the asset; the entity has transferred physical possession of the asset; the customer has the significant risks and rewards related to the ownership of the asset; and. 8 . SAICA submitted a comment letter on ED – Effective Date of IFRS 15 : Proposed Amendments to IFRS 15 – Revenue from Contracts with Customers; IFRS 15 is addressed at the SAICA Accounting Update seminar. Early application permitted In June 2014, IASB, along with the US Financial Accounting Standards Board (FASB), announced the formation of a joint Transition Resource Group (the TRG) to support implementation by considering potential implementation issues submitted by stakeholders. It was adopted in 2014 and became effective in January 2018. using the asset to produce goods or provide services; using the asset to enhance the value of other assets; using the asset to settle liabilities or to reduce expenses; the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs; the entity’s performance creates or enhances an asset that the customer controls as the asset is created; or. The standard introduces a five step approach to recognising revenue that could see radical changes in the timing of revenue recognition for many companies. Effective date. [IFRS 15:14]. The International Financial Reporting Standards Foundation is a not-for-profit corporation incorporated in the State of Delaware, United States of America, with the Delaware Division of Companies (file no: 3353113), and is registered as an overseas company in England and Wales (reg no: FC023235 NZ IFRS 15 – This version is effective for reporting periods beginning on or after 1 Jan 2019 (early adoption permitted) Australian-specific paragraphs (which are not included in IFRS 15) are identified with the prefix “Aus”. 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