The new revenue standard is likely to affect the accounting method of revenue. It was jointly issued by the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) in May 2014, and will replace the current guidelines under the International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP), and a single new revenue recognition model was introduced for customer contracts. For some companies, the new standard will have a huge impact on the way and timing of revenue recognition. All companies will be subject to new and broader disclosure requirements. The new standard will take effect during the annual period beginning on or after January 1, 2018, allowing early adoption.
Due to the large changes in the new revenue standards, the complexity of the content, and more principled regulations, all enterprises will have varying degrees of impact. At the same time, in recent years, new businesses and new business models have emerged one after another, and there are still many confusions when they implement the new revenue standards. Daxin Technical Standards Department has sorted out 100 frequently asked questions and answers for the implementation of the new revenue standards from the aspects of contract identification, revenue recognition, revenue measurement, accounting treatment of special transactions, and presentation, so that people in the industry can better understand and apply the new revenue standards.
This question and answer is only for the reference of accounting firms and relevant practitioners in their practice, and cannot replace relevant laws and regulations, CPA practice standards, and CPA professional judgments.
|Daxin Research Institute publish 100 FAQs about IFRS15|