IFRS 15 Revenue from Contracts with Customers replaces all existing IFRS revenue recognition requirements. The new standard is effective for annual periods beginning on or after 1 January 2018.
IFRS 15 provides accounting requirements for all revenue and affects all organizations that enter into contracts to provide goods or services to their customers. This may have consequences for the type of financial and nonfinancial data that is captured in order to achieve compliance, as well as the way in which the data is processed and reported.
The new standard will affect many activities across an organization, from sales and marketing through to commercial and finance functions. The scale of impact is driven by industry, each organization’s commercial relationships with its customers and its system and data capabilities.