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.

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