30 July 2015- The International Accounting Standards Board (IASB) today published for public consultation some proposed clarifications to and transition reliefs for IFRS 15 Revenue from Contracts with Customers.
The proposed targeted amendments follow discussions at meetings of the Transition Resource Group (TRG), which was set up jointly by the IASB and the US Financial Accounting Standards Board (FASB) to support companies in implementing the new revenue Standard after it was issued in May 2014.
The Exposure Draft proposes to clarify:
- how to identify the performance obligations in a contract;
- how to determine whether a party involved in a transaction is the principal (responsible for providing the goods or services) or the agent (responsible for arranging for the goods or services to be provided to the customer); and
- how to determine whether a licence provides the customer with a right to access or a right to use the entity’s intellectual property.
In addition, the IASB proposes two reliefs to aid the transition to the new revenue Standard.
The consultation is open for comment until 28 October 2015. The IASB expects to complete its discussions on these issues by the end of 2015, after which the final amendments to the Standard will be issued. (Source- http://www.ifrs.org)
