Clarifications to IFRS 15 Revenue from Contracts with Customers

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Financial Reporting Standard (IFRS) 15 Revenue from Contracts with Customers.

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The objective of this narrow-scope amendment project is to clarify and provide transition relief for IFRS 15 Revenue from Contracts with Customers in respect of issues arising from the discussions of the Transition Resource Group for Revenue Recognition (TRG).

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal.  Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.

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PROJECT NEWS

Non-authoritative Material – Revenue from Contracts with Customers
June 9, 2017. The Basis for Conclusions and Illustrative Examples issued by the IASB that accompany, but are not part of, IFRS 15 have been added to Part I of the CPA Canada Handbook – Accounting (in both cases excluding amendments made subsequently by the IASB for Clarifications to IFRS 15 Revenue from Contracts with Customers). The AcSB is taking a phased approach to adding non-authoritative material issued by the IASB to the Handbook.

Video of Panel Discussion – IFRS 15
October 28, 2016. Watch the video and download the slides from this panel discussion hosted by the AcSB and chaired by IASB member, Gary Kabureck. Hear standard-setter, preparer, auditor and securities-regulator insights into the implementation of IFRS 15 Revenue from Contracts with Customers.

Panel Discussion – IFRS 15
September 23, 2016. On October 14, 2016, in Toronto, the AcSB will host a panel discussion on implementing IFRS 15 Revenue from Contracts with Customers. Hear about the key application issues and challenges, and tips to manage your implementation of this important new standard. Seats are limited. Register today!

Final Amendments – Clarifications to IFRS 15 Revenue from Contracts with Customers
April 15, 2016.  The IASB has issued narrow-scope amendments to the revenue standard to clarify some requirements and provide additional transitional relief for companies implementing the new standard.  The amendments are effective for annual reporting periods beginning on or after January 1, 2018 with earlier application permitted

FYI Article – IFRS 15: The New Revenue Standard – An Extra Year to Get Ready!
January 7, 2016. Spring into action now! Read why you should get started implementing the new revenue standard given the extent of time needed for this significant undertaking.

AcSB Response – Clarifications to IFRS 15
On October 27, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in July 2015. The letter supports the narrow-scope amendments proposing clarifications to and transition relief for IFRS 15 Revenue from Contracts with Customers. The letter commends both the IASB and the FASB for taking action to support the interpretation of the significant new revenue standard (i.e., IFRS 15 and the Accounting Standards Update No.2014-09 Revenue from Contacts with Customers (Topic 606)) that will result in a more consistent application globally. The letter notes that it is important for both Boards to continue to focus on the goal of a common basis of reporting revenue. Accordingly, the letter provides some recommendations to help achieve this goal, while enabling both Boards to finalize the proposed amendments without delay so that preparers can focus on implementing the new revenue standard. Read the AcSB letter posted by the IASB.

AcSB Decision Summary – October 20, 2015
The AcSB considered input from its Joint Transition Resource Support Group for Revenue Recognition and the benefit of its participation in recent international discussions on the IASB’s Exposure Draft, “Clarifications to IFRS 15,” in developing a response to these proposals. The AcSB approved its response letter, subject to drafting changes. 

AcSB Exposure Draft – Clarifications to IFRS 15
September 11, 2015. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments, on the form provided, by October 28, 2015.

IASB Exposure Draft – Clarifications to IFRS 15
August 11, 2015. The IASB has issued an Exposure Draft proposing clarifications to and transition relief for IFRS 15 Revenue from Contracts with Customers. Canadian stakeholders are encouraged to submit their comments to the IASB by October 28, 2015.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.