Alert: A Summary of IFRS 15 Revenue from Contracts with Customers

Category: IFRS

Alert: A Summary of IFRS 15 Revenue from Contracts with Customers

In 2008, the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP) that would:

  • Remove inconsistencies and weaknesses in existing revenue requirements.
  • Provide a more robust framework for addressing revenue issues.
  • Improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets.
  • Provide more useful information to users of financial statements through improved disclosure requirements.
  • Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer.

Previous revenue recognition requirements under IFRS provided limited guidance, and as a result, the two main revenue recognition standards, IAS 18 Revenue and IAS 11 Construction Contracts, could be difficult to apply to complex transactions and multiple-element arrangements. Accordingly, IFRS 15 Revenue from Contracts with Customers replaces all existing revenue standards.

IFRS Hot Topic: A Summary of IFRS 15 Revenue from Contracts with Customers

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Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.