IFRS 15: what is it and how to use

IFRS 15: what is it and how to use – you will find out by reading this article! 

IFRS, which is short for International
Financing Reporting Standards, are known as a set of accounting standards. This
set is used to govern and track certain transactions and/or events that should
be mentioned and reported adequately in financial statements of reports. In
this article we will highlight IFRS 15, what it is and how it is used. These
specific International Financing Reporting Standards are used for businesses
that are involved with transferring goods or practices to customers. It does
not matter if this is for a business that is public, private or non-profit.
Please read along to get to know more about IFRS 15.

IFRS 15 explained

IFRS 15 has been introduced since the first
of January in 2018. It is specifically used to track and note any revenue that
is gained from transferring services or goods by the company to a customer.
IFRS 17 is often deemed to change IFRS 15, however this is not the case. The
principles and standards of IFRS 15 are the same, but IFRS 17 further explains
and clarifies the principles that are applied in IFRS 15. The reason that IFRS
15 is used and implemented has to do with having a uniform way to track the
accounting for similar transactions. The implementation of this set of standards
has allowed it to become clearer for investors and consumers to compare the
results of specific businesses and industries. Below we will lay out the five
steps of which this specific IFRS consists:

• Identify the contract with a customer or
  consumer.
• Identify the performance obligations that
  are mentioned in the contract.
• Determine or set the transaction price.
• Allocate the set transaction price.

Determine the revenue if or when the
business satisfies a performance obligation. This simply means that is should
be laid out when revenue is deemed as revenue, or what exactly the performance
obligation means. In example, when can say that the performance obligation will
be satisfactory if a customer has received the goods or services, or this can
be the case when the client has paid for said services or goods.

annualreporting.info for more information
on IFRS

As IFRS is a rather difficult concept to
navigate. Aside from that, it is also continually changing, resulting in
changes that should be applied to your financial accounting standards.
Therefore, annualreporting.info has made an overview for you to find everything
about previous, current and future IFRS’s. You will find what each IFRS
contains and how it should be applied to a variety of businesses or industries.

Visit Annual Reporting for more information

If you want to know more about IFRS 15 or
other IFRS’s, do pay a visit to the website annualreporting.info. The website will
clearly explain everything there is to know about IFRS. They also provide
information on IFRS topics, the IFRS standards, IFRS definitions and IFRS
jargon. Therefore, this website has gathered all the information on this
concept and has made it easy to navigate. Go ahead and visit the website now!