New Standard on Revenue Recognition

IFRS 15 Revenue from Contracts with Customers

The IASB and FASB have jointly issued a long-awaited standard on revenue recognition, IFRS 15 Revenue from Contracts with Customers, in May 2014.

"An entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services."

The application of IFRS 15 needs a change in mindset of the accounting community and stakeholders.

Management needs to evaluate the impact of IFRS 15 on their revenue recognition policy which may affect the business processes.