IFRS 15: Stabilised standard on revenue recognition
In January 2016, the IASB completed its redeliberations of the clarifications required by IFRS 15 on revenue recognition. The transitional arrangements for the amendments that will be published in March 2016 have therefore been agreed upon.
Keywords: Mazars, Thailand, IFRS, IASB, IFRS 15, Revenue Recognition, TRG
14 March 2016
In practice, these amendments shall be applied retrospectively and will be mandatory from 1 January 2018 (i.e. the date on which IFRS 15 itself becomes applicable).
At the same time, the IASB has announced that it will put on standby the Transition Resource Group (TRG), which was set up after the publication of IFRS 15 and which met six times between July 2014 and November 2015. The IASB hopes that this will reassure stakeholders that there will be no further changes to IFRS 15 between now and 1 January 2018. However, it encourages these stakeholders to submit any practical question that may still arise via its website. If necessary, the IASB will organise a public debate to discuss any topics that may be relevant.
The American members of the TRG will continue to meet. The IASB will monitor the discussions across the Atlantic, but it observes that entities preparing their financial statements under IFRS are not expected to follow the FASB’s decisions or public debates (even if Topic 606 is almost identical to IFRS 15).
It may be difficult in practice to ignore what might be said on the American side in the coming months. Nevertheless, the transitional projects can now be carried out against the background of a stabilised IFRS.