Transition to IFRS 15 on revenue recognition: tips and pitfalls

With only two years until the new revenue recognition standard IFRS 15 comes into force overhauling revrec rules, Galina Ryltsova, partner in accounting advisory at PwC considers the key issues to consider when planning for the transition

The International Accounting Standard Board’s (IASB) amendments to IFRS 15 Revenue from Contracts with Customers, the new revenue recognition standard was finalised in April 2016. This will affect all companies reporting under International Financial Reporting Standards (IFRS) starting in 2018.

But you need to start planning now, as implementation of the standard can be long, costly and contentious internally, and may require consultation with external experts and stakeholders.

The one potential bright spot is that if you get started soon, you can get ahead of your competitors and use the required systems and business process changes to drive business value as well as just compliance.

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