AASB 15 Revenue from Contracts with Customers
AASB 15 Revenue from Contracts with Customers fundamentally changes the financial reporting landscape for how entities recognise revenue.
Most entities will face significant challenges when they prepare their financial statements using this new accounting standard. The changes can be complex and can have effects beyond just the accounting treatment. When adopting AASB 15, including deciding which transition route to apply, entities need to consider both the commercial impacts on their business as well as any changes that need to be made to business processes and accounting systems.
Our AASB 15 experts can help you determine the impact of the new standard on your reported earnings.
Steps to Implementation
Impacts of AASB 15 Adoption
The effect of adopting the new revenue standard raises many questions such as:
- How will revenue recognition be impacted?
- Which processes and systems will need changing?
- Which wider business planning activities will be affected?
- What staff training will be required?
- How will current agreements be affected?
AASB 15 – Industry Heat Map
As a guide the heat map below considers the relative level of impact and complexity when adopting AASB 15.
||Red denotes a high level of potential impact and complexity.
||Amber denotes a medium level of potential impact and complexity.
||Dark teal denotes a low level of potential impact and complexity.
Please see the AASB 15 Fact Sheet for further information including:
- Commercial and practical considerations
- A checklist of complex issues
- The tax impacts; and
- Consideration of the adoption methodology.