IAS 7 at a glance
Insights into IAS 7IAS 7 sets out the requirements for presenting statements of cash flows. This article provides an overview of its objective, scope and key requirements.
Accurate and consistent revenue recognition is a cornerstone of sound financial reporting for all businesses, ensuring comparability across industries and markets.
IFRS 15 ‘Revenue from Contracts with Customers’ was jointly developed by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to align revenue reporting practices under IFRS and US GAAP. The objective of the standard is not to alter the definition of revenue, but to improve comparability by establishing a clear framework for recognising and measuring revenue.
Our ‘Insights into IFRS 15’ series summarises the key areas of the Standard, highlighting some areas that are challenging to apply in practice, to assist reporting entities in understanding how to apply IFRS 15’s requirements.
IFRS 15 introduced the five-step model for revenue recognition and applies specifically to contracts with customers. This article deals with Step 2 of the five-step model which covers the identification of performance obligations – the key units of account of IFRS 15.
Chetan Hans
Partner – Head of CFO Advisory
Related insights
Step 3: Determining the transaction price
Insights into IFRS 15Accurate and consistent revenue recognition is a cornerstone of sound financial reporting for all businesses, ensuring comparability across industries and markets. The objective of determining the transaction price under IFRS 15 is to identify the amount of consideration an entity expects to be entitled to in exchange for transferring goods or services to a customer.
Principal versus agent considerations
Insights into IFRS 15IFRS 15 ‘Revenue from Contracts with Customers’ was jointly developed by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to harmonise revenue reporting under IFRS and US GAAP. In this article, we explore how to assess principal versus agent relationships and their impact on revenue recognition.