Accounting for revenue – I’ll bill you, then hold!

Another area where IFRS 15 might cause differences from existing accounting practices Some interesting revenue-related issues come up through bill and hold arrangements – ones in which (to cite the IFRS 15 definition) “an entity bills a customer for a product but the entity retains physical possession of the product until it is transferred to…

Accounting for revenue – what regulators might look for

Two aspects of IFRS 15 where the SEC has already expressed particular interest By now we’ve spent no less than sixteen (!) previous articles discussing aspects of the new revenue recognition standard, IFRS 15, effective for financial years beginning on or after January 1, 2017. In general, it’s not really plausible to highlight some aspects of the…

Revenue from licenses – identifying the obligations

An example of how the new IFRS 15 may require re-examining existing practices in a common area As we summarized here, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2017 (NB this was subsequently amended to January 1, 2018). The new…

Accounting for revenue – got a warrant for that?

How IFRS 15 affects the accounting treatment for a common aspect of doing business As we summarized here, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2017 (NB this was subsequently amended to January 1, 2018). The standard is built around a…

Accounting for revenue – principal versus agent

How IFRS 15 affects an area where issues commonly arise in practice As we summarized here, the IASB has issued IFRS 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2017 (NB this was subsequently amended to January 1, 2018). The standard is built around a five-step…