The accounting standard was developed jointly with the US Financial Accounting Standards Board (FASB) and came into effect in 2018. It was created to improve the quality and comparability of revenue information provided to investors globally.

There have been some concerns that the standard is complex to implement although there is acceptance that it has improved the comparability of revenue information among entities, but it was costly and complicated to implement.

The IASB said: ‘Initial feedback suggests that IFRS 15 has achieved its objective and is working well, although some stakeholders still find applying aspects of the requirements challenging.

‘Stakeholders observed that implementing IFRS 15 involved a significant learning process for entities. They commented that the standard is complex and most entities took time to understand the concepts and terminology, often turning to accounting firms for advice on developing accounting policies. Therefore, a few stakeholders suggested that the standard might be too complex to apply for smaller entities and for entities in emerging economies.’

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