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IFRS 15: 'Revenue from contracts with customers'

Effective for accounting periods beginning on or after 1 January 2018

The IASB published the new IFRS 15 Revenue from contracts with customer's standard, in order to create a single model for revenue recognition for contracts. IFRS 15 will promote greater consistency and comparability across industries and capital markets. The actual impact on each company's top line will depend on their specific customer contracts and how they have applied existing accounting standards.

  • effective for accounting periods beginning on or after 1 January 2018;
  • provide a single accounting model for Revenue from contracts with customers;
  • greater consistency and comparability across industries and capital markets.

Scope IFRS 15

IFRS 15 applies to all entities that enter into contracts with customers to provide goods, services or intellectual property, except the following:

  • lease contracts within the scope of IAS 17;
  • insurance contracts within the scope of IFRS 4;
  • financing arrangements within the scope of IAS 39;
  • financial instruments within the scope of IFRS 9;
  • guarantees other than product warranties;
  • non-monetary exchange between entities in the same line of business to facilitate sales to third-party customers;
  • contracts that are not with customers (e.g. risk-sharing contracts).

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