ifrs15revenue.docx

1、ifrs15revenue.1 Overview of IFRS 15IFRS 15 Revenue from Contracts with Customers outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle is that an entity recognises revenue to depict the transfer of goods or servi

2、ces to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 was issued in May 2014 and is required to be applied for annual periods beginning on or after 1 January 2017. Prior to that date, entities may con

3、tinue to apply the predecessor Standards and related Interpretations (see below). Alternatively, entities may choose to apply IFRS 15 in advance of the 2017 effective date, provided that they disclose that fact (see section 15 for detailed transition provisions).IFRS 15 supersedes the following:IAS

4、18 Revenue (see appendix A1 ); IAS 11 Construction Contracts (see appendix A2 ); IFRIC 13 Customer Loyalty Programmes (see 5.6 in appendix A1 ); IFRIC 15 Agreements for the Construction of Real Estate (see 2.2 in appendix A1 ); IFRIC 18 Transfers of Assets from Customers (see 2.4 in appendix A1 ); a

5、nd SIC-31 Revenue-Barter Transactions Involving Advertising Services (see 4.5 in appendix A1 ). 1.2 Comparison of IFRS 15 with predecessor IFRSsIFRS 15 is a complex Standard, introducing far more prescriptive requirements than were previously included in IFRSs, and it may result in substantial chang

6、es to revenue recognition policies for some entities. It requires the application of significant judgement in some areas, but in other areas it is relatively prescriptive, allowing little room for judgement. Whereas IAS 18 provides separate revenue recognition criteria for goods and services, this d

7、istinction is removed under IFRS 15. The new Standard focuses instead on the identification of performance obligations and distinguishes between performance obligations that are satisfied at a point in time and those that are satisfied over time, which is determined by the manner in which control of

8、 goods or services passes to the customer. The new model means that revenue may be recognised over time for some deliverables previously accounted for as goods (e.g. some contract manufacturing); it also means that revenue may be recognised at a point in time for some deliverables previously account

9、ed for as services (e.g. some construction contracts).Specific topics on which more prescriptive requirements have been introduced include:the identification of a contract with a customer; the identification of distinct performance obligations and the allocation of the transaction price between thos

10、e obligations; accounting for variable consideration and significant financing components; recognition of revenue arising from licences; and presentation and disclosure of revenue from contracts with customers, and other balances related to revenue. Other changes include:the scope of IFRS 15 has bee

11、n expanded to cover costs relating to contracts, distinguishing between costs of obtaining a contract and costs of fulfilling a contract, and providing detailed guidance on when it is appropriate to capitalise such costs; whereas previously IAS 11 provides specific requirements for accounting for co

12、nstruction contracts, such contracts are accounted for in accordance with the general principles of IFRS 15; the recognition of interest revenue and dividend revenue are not within the scope of IFRS 15. These matters are now dealt with under IFRS 9 Financial Instruments or, for entities that have no

13、t yet adopted IFRS 9, IAS 39 Financial Instruments: Recognition and Measurement; and specifically excluded from the scope of IFRS 15 are non-monetary exchanges between entities in the same line of business to facilitate sales to customers or potential customers. This scope exclusion is different fro

14、m the related guidance under IAS 18:12 which refers to exchange transactions that are not regarded as transactions that generate revenue these are transactions in which goods or services are “exchanged or swapped for goods or services which are of a similar nature and value”. The disclosures require

15、d by IFRS 15 are likely to be much more extensive than those previously provided in accordance with IAS 11 and IAS 18, and additional disclosures are also required in interim financial reports prepared in accordance with IAS 34 Interim Financial Reporting. In some cases, entities may need to conside

16、r changes to existing systems and processes in order to capture the information to be disclosed.1.3 Application of the IFRS 15 frameworkThe overview below is intended to provide a guide for users to navigate the key concepts of IFRS 15. The overview does not summarise all of the requirements of the

17、Standard users should refer to the more detailed discussions later in this chapter and to the text of the Standard for a complete understanding. In order to meet the core principle of recognising revenue to depict the transfer of promised goods or services to customers in an amount that reflects the

18、 amount of consideration to which an entity expects to be entitled in exchange for those goods or services, IFRS 15 adopts a five-step model (see section 4 for background).Requirement of the Standard Detailed discussion Step 1 requires an entity to identify the contract with the customer. A contract

19、 does not have to be written in order for it to meet the criteria for revenue recognition; however, it does need to create enforceable rights and obligations. IFRS 15 provides detailed guidance on how to identify a contract. This step also considers when it is appropriate to combine contracts (see 5

20、.4 ) and the implications for revenue recognition of modifying a contract (see section 10 ).Section 5 Step 2 requires an entity to identify the distinct goods or services promised within the contract. Distinct goods and services should be accounted for as separate deliverables (this process is somet

21、imes known as unbundling). These distinct goods and services are referred to as performance obligations. Specific guidance must be considered to determine whether a good or service is distinct.Section 6 Further guidance is also provided in IFRS 15 to identify distinct performance obligations in part

22、icular scenarios: warranties (see 6.3.4 ); customer options to purchase additional goods and services at a discount (or for free) (see 6.3.5 ); and non-refundable upfront fees (see 6.3.6 ).Step 3 requires an entity to determine the transaction price for the contract. This will be affected by a numbe

23、r of factors including:Section 7 variable consideration (see section 7.2 ); the extent to which the recognition of variable consideration should be constrained (see 7.3 ); significant financing components within a contract, which will require an adjustment for the time value of money (see section 7.

24、4 ); if non-cash consideration is received in exchange for transferring promised goods or services (see 7.5 ); and if any consideration is payable to the customer as part of the transaction (see 7.6 ).Step 4 requires an entity to allocate the transaction price determined in Step 3 to the performance

25、 obligations identified in Step 2. IFRS 15 requires this allocation to be based on the stand-alone selling price of each performance obligation and includes detailed requirements on how any discounts or variable consideration should be treated in the allocation (see 8.3 and 8.4 , respectively).Secti

26、on 8 Further guidance is included within IFRS 15 regarding how entities should account for: breakage (customers unexercised rights) (see section 7.7 ); and changes in the transaction price (see 8.5 ).In principle, allocation on a stand-alone selling price basis requires a calculation to be performed

27、 for each contract containing more than one performance obligation. This may prove a significant logistical challenge for entities with a very large number of different contracts, and in some cases changes to existing systems may be needed.Step 5 specifies how an entity should determine when to reco

28、gnise revenue in relation to a performance obligation, and whether that revenue should be recognised at a point in time or over a period of time. IFRS 15 focuses on when control of the good or service passes to the customer, which may be over time or at a point in time.Section 9 IFRS 15 includes spe

29、cific guidance on licences. It distinguishes between two different types of licence (right of use and right to access), with the timing of revenue recognition being different for each.Section 11 IFRS 15 includes guidance on how to account for costs relating to a contract, distinguishing between cost

30、s of obtaining a contract and costs of fulfilling a contract. When this results in costs being capitalised, additional guidance is provided on determining an appropriate amortisation period and on impairment considerations.Section 12 Detailed guidance is provided in IFRS 15 on both the presentation

31、and disclosure of the revenue balance, and other balances related to revenue in the financial statements.Sections 13 and 14 On adoption of IFRS 15, entities are able to transition using either:Section 15 a fully retrospective approach (with some elective practical expedients); or a modified approach

32、 to retrospective application, which requires a cumulative catch-up adjustment to be made to equity at the start of the year in which the Standard is first applied (i.e. prior years presented are not restated).1.4 Convergence project with FASBIFRS 15 is the result of a convergence project between the IASB and the US Financial Accounting Standards Board (FASB). IFRS 15 and the equivalent US standard are nearly fully converged, the main