IFRS 15: The 10 key points for entities in sectors with long-term contracts

2016, an important year in terms of transition

The 10 key points:

1. Revenue recognition over time is no longer automatic
2. A limited choice of methods for measuring revenue recognised over time
3. The end of margin smoothing
4. A potentially different breakdown of contracts, with a separate margin for each distinct good or service
5. A clear framework for estimating variable consideration
6. Upward or downward adjustment of revenue where there is a significant financing component
7. A legal approach to contracts and contract modifications
8. The end of due to/due from
9. Note disclosure of the backlog, now defined in accounting terms
10. A restrictive approach to recognize as an asset the costs of obtaining a contract