Blog Layout

Audit Lowe Down – IFRS 15 Post-Implementation Review (PIR): What Did We Learn?

Lowe Lippmann Chartered Accountants

The International Accounting Standards Board (IASB) recently concluded its Post-Implementation Review (PIR) of IFRS 15 Revenue from Contracts with Customers. This is relevant in Australia since we have adopted this standard as AASB 15.


The PIR overall conclusion is that the five-step model has improved comparability in financial reporting and is generally well understood by stakeholders.


However, the review highlighted some areas that still pose challenges for certain sectors, particularly with complex contracts, variable consideration, and the balance between principles-based guidance and specific application issues.


Regardless of these areas, there are no major amendments to IFRS 15 expected, but the IASB will continue to monitor areas where further clarification could help entities better apply the standard.


We continue to see clients who have not fully understood the requirements of AASB 15 and therefore we encourage regular reviews of sales contract against the requirements of the standard to ensure appropriate revenue recognition methodology is being applied.


For our not-for-profit clients, the Australian Accounting Standards Board (AASB) PIR of AASB 1058 Income of NFP Entities and the interaction with AASB 15 is still ongoing, however we are not expecting to see any significant amendments arising from this project.



Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

Liability limited by a scheme approved under Professional Standards Legislation


March 27, 2025
Bill passed for Instant Asset Write-Off of $20,000 for 2024-25 There was no mention of the extension of the instant asset write-off ( IAWO ) within the Federal Budget delivered last Tuesday night, leaving many small business taxpayers frustrated and uncertain. However, the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2025 has now been passed through the Parliament, and it included the extension of the IAWO threshold of $20,000 for assets first used or installed ready for use between 1 July 2024 and 30 June 2025. After the Bill has now been passed by both the House of Representatives and the Senate, it now simply waits to receive Royal assent.
March 25, 2025
SUMMARY AND FULL COMMENTARY UPDATES 
March 20, 2025
ATO appeals to High Court in the Bendel Case decision The Australian Taxation Office ( ATO ) has now applied to the High Court for special leave to appeal the Full Federal Court’s decision in FCT v Bendel [2025] FCAFC 15. Last month, we released a Tax Alert ( see here ) after the Federal Court delivered their unanimous decision that an unpaid present entitlement (or UPE ) owed by a discretionary trust to a corporate beneficiary is not a “loan” for Division 7A purposes. The ATO has also issued an Interim Decision Impact Statement ( DIS ) in response to the Full Federal Court decision. A DIS provides information for taxpayers and advisers, and includes: details of the case, a brief summary of facts, issues decided by the court or tribunal, and relevant legislation and case law.
More Posts
Share by: