In May 2014, the IASB and FASB each issued a converged standard for revenue recognition. The standards are effective for reporting periods beginning after 1 January 2017 under IFRS and 15 December 2016 under U.S. GAAP.
Key aspects of the converged accounting standards:
The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services.
Companies under contract to provide goods or services to a customer will be required to follow a five-step process to recognize revenue:
The standard introduces new, increased requirements for disclosure of revenue in a reporter's financial statements.
|akhlo: I think this is IAS 15 - pretty sure it is not effective until Jan 1, 2018 (but with 2017 comparative)?|
|SNaeem: No, Its IFRS 15|
|Ewan2015: ASC 606 is not effective until 1 Jan 2018 for issuers and 1 Jan 2019 for non issuers. IFRS 15 is effective 1 Jan 2018. Both you and CFA Institute need to update this LOS.|