Interim disclosures of new standards – make me disclose it twice, shame on you…?

Here ‘s another issue recently discussed by CPA Canada’s IFRS Discussion Group A reporting issuer prepares Q2-2018 and Q3-2018 interim financial statements for the six months and nine months ending June 30 and September 30, 2018, respectively. The reporting issuer adopts IFRS 9 and IFRS 15 on January 1, 2018, and is considering the extent…

Accounting for revenue – it really is a whole new model!

As we’ve discussed many times in the past, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2018. Canada’s IFRS Discussion Group recently considered the following issue relating to the application of IFRS 15: Entity A develops, manufactures and distributes innovative products. Product X…

IFRS 15 – how much should investors worry?

“Investors Worry Revenue Rules Will Allow Earnings Manipulation” announces a recent article on the Bloomberg BNA website. Here are some extracts from the article, written by Steve Burkholder: Some investors worry that revenue accounting rules that public companies must begin using in January will yield inconsistent reporting and allow earnings manipulation, according to Bloomberg BNA…

Revenue accounting policies – where (or where not) to look…

The IFRS Discussion Group recently considered the relevance to Canadian preparers of the Transition Resource Group (TRG) for Revenue Recognition… The TRG was initially established as a joint initiative between the IASB and the Financial Accounting Standards Board (FASB). The relevance question arises in particular because the IASB announced in early 2016 that it doesn’t plan…

Accounting for revenue – identifying some material rights

As we’ve discussed in many previous articles, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2018. The new standard is built around a five-step framework, the second step being to identify the performance obligations in the contract. A performance obligation is: A promise…

Accounting for revenue – I’ll extend it if you will!

As we’ve discussed in many previous articles, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2018. The new standard is built around a five-step framework, the first step being to identify the contract(s) with the customer. Often of course, this step will be…