IFRS 15 for the TMT industries

The technology, media, and telecom (TMT) industry includes a wide variety of companies that provide a large range of goods and services to customers. This variability and complexity found in the types of contracts and arrangements within the TMT industry will likely cause accountants applying IFRS 15 considerable difficulty.

The new principle

The core principle in IFRS 15 is to recognise revenue in a way that reflects how the goods or services are provided to the customer. It contains a lot more specific and detailed guidance than the current IAS 18 Revenue standard.

IFRS 15 focuses on the ‘promises’ made to the customer and requires greater separation of the components or ‘promises’ made in the contract. Revenue needs to be allocated to each ‘distinct’ component in proportion to the standalone selling prices of each ‘promise’.

Articles

• IFRS 15 for the TMT industries – Overview
• IFRS 15 for the TMT industries – Timing of revenue recognition
• IFRS 15 for the TMT industries – Timing of revenue recognition – Licences
• IFRS 15 for the TMT industries – Contracts that contain multiple goods or services
• IFRS 15 for the TMT industries – Contracts that have variable consideration
• IFRS 15 for the TMT industries – Contract modifications
• IFRS 15 for the TMT industries – Contracts with right of return
• IFRS 15 for the TMT industries – Tender costs
• IFRS 15 for the TMT industries – Long-term contracts
• IFRS 15 for the TMT industries – Principal vs. agents