Are we ready?
Finally,
A long awaited and most controversial (in a sense of wide range of its application requirements) standard on revenue is set to be notified by “ICAI – An Apex Accounting body in India”, which most likely be applicable w.e.f. 01 April 2018.
Please note that IFRS -15 has already been notified by IASB (International Accounting Standard Board) long back and an early adoption was permissible for the entities around the world, However early adoption has been postponed by our regulators till further notification and hence it was not allowed for Indian entities.
Now, Since everyone under IFRS regime has started gearing it up on this new Revenue Standard around the world , now India has also initiated its deliberation on this standard and setting its directions towards the announcement of any effective date for India perspective.
The article is just to provide an overview of what exactly the new standard will bring in and what kind of preparation one has to think of to ensure smooth transition from existing Ind-As 18 – “Revenue” and its allied standards. However, we are planning to start series of articles on IFRS -15 i.e. Ind-As -115 soon.
IFRS-15 – “Revenue from Contracts with Customers” will bring Businesses irrespective of its nature of activities e.g. Banking, Hospitality, Energy, Oil & Gas etc at one common place & rules to recognize revenue in the Financial Statements without furtherance on any Industry specific guidances.
Now,
Let’s have a overall glimpse about this new standard so that readers can have a idea about the significance of changes that are expected to be come in, to almost every Industry (if not directly affecting to any Industry then atleast it is required to assess why it is not affecting)-
FIVE – STEP MODAL Framework –
Finally,
A long awaited and most controversial (in a sense of wide range of its application requirements) standard on revenue is set to be notified by “ICAI – An Apex Accounting body in India”, which most likely be applicable w.e.f. 01 April 2018.
Please note that IFRS -15 has already been notified by IASB (International Accounting Standard Board) long back and an early adoption was permissible for the entities around the world, However early adoption has been postponed by our regulators till further notification and hence it was not allowed for Indian entities.
Now, Since everyone under IFRS regime has started gearing it up on this new Revenue Standard around the world , now India has also initiated its deliberation on this standard and setting its directions towards the announcement of any effective date for India perspective.
The article is just to provide an overview of what exactly the new standard will bring in and what kind of preparation one has to think of to ensure smooth transition from existing Ind-As 18 – “Revenue” and its allied standards. However, we are planning to start series of articles on IFRS -15 i.e. Ind-As -115 soon.
IFRS-15 – “Revenue from Contracts with Customers” will bring Businesses irrespective of its nature of activities e.g. Banking, Hospitality, Energy, Oil & Gas etc at one common place & rules to recognize revenue in the Financial Statements without furtherance on any Industry specific guidances.
Now,
Let’s have a overall glimpse about this new standard so that readers can have a idea about the significance of changes that are expected to be come in, to almost every Industry (if not directly affecting to any Industry then atleast it is required to assess why it is not affecting)-
FIVE – STEP MODAL Framework –
- Identify the contract(s) with a customer,
- Identify the performance obligations in the contract..............................for further reading please refer link http://gyanifrs.com/2017/04/ifrs-15-revenue-from-contracts-with-customers-to-be-notified-by-icai-w-e-f-01-april-2018/
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