THE IASB has issued an amendment to the revenue standard, IFRS 15 Revenue from Contracts with Customers, formalising the deferral of the effective date by one year to 2018.
The new revenue recognition standard will now come into force on 1 January 2018 instead of 2017, after the international accounting standard setter brought its effective date in line with US counterpart FASB which voted in favour of delaying the standard for preparers using US GAAP earlier this year.
Both boards approved a converged set of revenue rules in 2014, aimed at improving the comparability of financial statements around the world.
The main reason for the amendment is that the IASB is currently consulting on some proposed clarifications to the standard.
The proposals follow discussions within the Revenue Transition Resource Group (TRG), established by the IASB and FASB to support companies in the standard’s implementation.
Consultation on the proposed clarifications ends on 28 October 2015. The IASB expects to complete its discussions on the clarifications in the light of the feedback received by the end of 2015, after which any final amendments to the standard will be issued.
Companies applying IFRS continue to have the option to apply the standard early.
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