IFRS Newsletter No. 03 – 2016
This newsletter has been created to inform you on the latest IFRS updates and relates to decisions made by the IASB and the IFRIC.
The IASB has published amendments to IFRS 15, Revenue from Contracts with Customers, which will have the same effective date as the standard itself of January 1, 2018. They emerge from the discussions of the Transition Research Group (TRG), which was set up jointly by the IASB and FASB to work on issues relating to implementation of the standard.
As expected, these amendments provide clarification on the concept of distinct goods and services, agent versus principal considerations, accounting for licenses of intellectual property, and implementing transition requirements. They do not change the fundamental principles of IFRS 15, and consequently few changes have been made to the body of the standard. The application guidance and illustrative examples have undergone more substantial changes and additions, and a further 40 pages have been added to the Basis for Conclusions.
As it will take some time to assess the full impact of these amendments, readers of the IFRS Newsletter will have to wait until next month for an in-depth discussion of the issues. As a result, the IFRS highlights for this month primarily relate to decisions made by the IASB and the IFRIC, as reported in their respective updates.