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  • Accounting Alert | March 2019

Revenue recognition over time under IFRS 15

Does your entity currently recognise its revenue on an over-time basis?  If you’re a for-profit entity, the world as you know it may be about to change!

The latest publication in BDO’s “Cheat Sheet” series highlights:

  • The new criteria to be met in order to recognise revenue over-time under IFRS 15 Revenue from Contracts with Customers
  • The removal of the percentage-of-completion basis for measuring revenue and construction/input costs (effectively eliminating the ability to smooth profits)
  • Specific considerations for special purpose reporters, and
  • Other areas that may be consequentially impacted from changing revenue numbers (such as bank covenants, staff bonuses, earn-out clauses etc.)

The Cheat Sheet can be viewed on BDO’s Accounting Advisory Services webpage


For more on the above, please contact your local BDO representative.