The IASB confirms its decision to defer the effective date of the new revenue standard

The IASB confirms its decision to defer the

On 28 April 2015, the International Accounting Standards Board (IASB) voted to publish an Exposure Draft (ED) proposing a one year deferral of the effective date of IFRS 15, Revenue from Contracts with Customers, to 1 January 2018.

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Background
 
On 28 April 2015, the International Accounting Standards Board (IASB) voted to publish an Exposure Draft (ED) proposing a one year deferral of the effective date of IFRS 15, Revenue from Contracts with Customers, to 1 January 2018.
 
On 19 May 2015, the IASB published an ED of proposed amendments to IFRS 15 to change the effective date to 1 January 2018. A feedback on the ED was required by 3 July 2015.
 
New development
 
On 22 July 2015, the IASB confirmed a one year deferral of the effective date of IFRS 15. Entities are now required to apply IFRS 15 no later than 1 January 2018. An early adoption continues to be permitted.
 
The IASB is expected to release its proposed amendments to the new standard shortly. The proposals are expected to relate to licences, identifying performance obligations, principal-agent considerations and transitional provisions.
 
This decision at the IASB meeting is consistent with that of the Financial Accounting Standards Board (FASB) on 9July 2015 where it finalised a one year deferral of the new revenue standard.

 
On 12 May 2015, the FASB issued a proposed ASU, Identifying Performance Obligations and Licensing, which would amend FASB ASC Topic 606, Revenue from Contracts with Customers, to clarify the guidance about identifying performance obligations and accounting for licences of intellectual property.

Impact on Ind AS road map
 
In India, Ind AS 115, Revenue from Contracts with Customers,is effective for the prescribed classes of entities covered in the first phase of the road map from financial year 2016-17.  We note that the decision of the IASB for a one year deferral of the effective date of the revenue standard does not automatically mean a deferral of the Ind AS 115 issued by the Ministry of Corporate Affairs. Ind AS 115 is aligned to IFRS 15. We will continue to monitor progress in India and update on any developments.


 To access the text of the IASB announcement, please click here. 

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