The European regulator, ESMA, has issued a public statement promoting consistent application of IFRS 15 Revenue from Contracts with Customers and transparent disclosure in the lead up to initial application.
In particular, the statement sets out ESMA’s expectations with respect to an issuer’s disclosures on the potential impacts of the initial application of IFRS 15 in its 2016 and 2017 annual financial statements and interim financial statements during 2017.
Although ESMA’s statement is European in its scope, regulatory bodies outside of Europe with a practical interest in managing the transition to the new standard are likely to have similar expectations. Therefore, entities in other jurisdictions may find the statement a useful guide when considering the disclosures they include in their annual and interim financial statements in the lead up to and in the year of initial application of IFRS 15.
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