Grant Thornton International Ltd has published a new publication in the Insights into IFRS 15 series:
- Determining the transaction price.
Revenue recognition is fundamental in all businesses, and it is important that it is recognized in a consistent and comparable way across industries and capital markets. IFRS 15 Revenue from Contracts with Customers was a result of the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) joint project to improve the financial reporting of revenue under IFRS Accounting Standards and US GAAP. The standard makes it clear that its purpose is not to redefine the concept of revenue, but rather to ensure that revenue is consistently recognized at the appropriate time and at the most reliable amount.
The Insights into IFRS 15 series summarizes the key areas of the standard, highlighting some areas that are challenging to apply in practice, to assist reporting entities in understanding how to apply IFRS 15’s requirements.
The new publication focuses on Step 3 of the five-step model, which covers determining the transaction price.
