In January 2016, the IASB announced that it does no plan to schedule additional TRG meetings. Summary observations and anticipated timing. In November 2016, the FASB announced that there are no further US TRG meetings schedule, but that they will continue to assess the need for future meetings. The best evidence of stand-alone selling price is the observable price of a good or service when the entity sells that good or service separately. IAS 11 covers construction contracts. IAS 18 Revenue is replaced by IFRS 15 from 2017. As a cost of obtaining the contract if… + e.g. 1 0 obj The method that best depicts the transfer of goods or services to the customer should be applied consistently throughout the contract and to similar contracts with customers. IFRS 15, Revenue from contracts with customers (“IFRS 15” or “the new standard”) will replace existing revenue recognition guidance under IFRS and US GAAP. It means that with a construction contract, percentage of completion method is no longer can be used. Please see www.pwc.com/structure  for further details. Public companies using US GAAP will be required to apply it for annual reporting periods beginning after 15 December 2017 (including interim reporting periods therein). PwC webcast on IFRS 15, 'Revenue from contracts with customers' Publication date: 02 Jun 2014 . /Filter /FlateDecode Latest insight IFRS 15 Revenue: Practical experiences from the market. Katie Woods explains the judgements involved in accounting for revenue contracts over time in the scope of IFRS 15. All relevant factors should be considered to determine whether the customer has obtained control of a good. The new standards on revenue and financial instruments are now effective. An example of such costs may be certain mobilisation, design, or testing costs. If not, the entity should capitalise those costs only if the costs relate directly to a contract, relate to future performance, and are expected to be recovered under a contract. << For example, a construction contract might involve the vendor procuring high value items for installation, such as elevators. Performance obligations might be explicitly stated in the contract but might also arise in other ways. Now is, therefore, a good time to take a look at what that means. /CreationDate (D:20160629155449+04'00') Ever since the new revenue standard IFRS 15 Revenue from Contracts with Customers was issued, I get one and the same question:. ... PwC webcast on IFRS 15, 'Revenue from contracts with customers' Link copied. We must recogonize revenue based on actual completion of performance obligation instead (at the point of handover and accepted by client). New and amended illustrative examples have been added for each of those areas of guidance. Related content . The construction industry has effectively lost its contract accounting ‘rule book’ and will now be guided by the principles of the generic revenue standard. - PwC video, PwC's IFRS 15 the basics – Step 2 – Identify the performance obligation in the contract - PwC video, PwC's IFRS 15 the basics – Step 3 – Determine the transaction price - PwC video, PwC's IFRS 15 the basics – Step 4 – Allocation of transaction prices to separate performance obligations - PwC video, PwC's IFRS 15 the basics – Step 5 – Recognise revenue when (or as) a performance obligation is satisfied - PwC video. For licences that are bundled with other goods or services, management will apply judgement to assess the nature of the combined item and determine whether the combined performance obligation is satisfied at a point in time or over time. So this feels like the right time to . From 1 January 2018 all companies applying IFRS must adopt IFRS 15. Allocate the transaction price to the separate performance obligations. Viewpoint has replaced Inform - click here to visit our new platform, IFRS 15 - Revenue from contracts with customers, IFRS 15, 'Revenue from contracts with customers', Amendment to IFRS 15 regarding the effective date of IFRS 15 effective 1 January 2018, Amendment to IFRS 15 regarding the clarifications to IFRS 15, 'Revenue from contracts with Customers' effective 1 January 2018, IFRS IC items not added to the agenda for IFRS 15, IFRS Manual of Accounting chapter 11 - IFRS 15 - Revenue from contracts with customers, Revenue standard is final – A comprehensive look at the new model: PwC In depth INT2014-02, IASB issues amendment to IFRS 15 'Revenue from contracts with customers’: PwC In brief - INT2016-07, PwC IFRS Talks - Episode 23: Initial Coin Offering (ICOs) 101 - PwC podcast, PwC IFRS Talks - Episode 5: IFRS 15, Revenue - PwC podcast, PwC's IFRS 15 the basics – Introduction to the standard - PwC video, PwC's IFRS 15 the basics – Step 1 – Want to identify a contract under IFRS 15? 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