IFRS Newsletter No. 04 – 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’s publication of amendments to IFRS 15 on April 12, was followed, less than a month later, by the FASB’s publication of slightly different amendments to Topic 606.
While work on the IFRS now seems complete for the present, the IASB envisaging no further changes before the Post Implementation Review, nothing is less certain on the American side. This is because the US TRG is continuing its work – without the IASB, now in an observer role – and this may lead to clarifications of the US standard. Not surprisingly, the first meeting of the US-only TRG addressed a subject that had been raised in the IFRS world: measuring progress with the technical milestones method.
Apart from issues of convergence between the two standards, there is also the question of the repercussions for IFRS users of the technical conclusions reached by the US standard-setter. The analyses conducted by the TRG, the SEC or resulting from other initiatives (industry taskforces of the AICPA, for example) on Topic 606 will clearly be sources of guidance for the application of IFRS 15. But their status in the world of IFRS remains uncertain.