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.