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EFRAG has completed its due process regarding IFRS 15 Revenue from Contracts with Customers and has submitted its Endorsement Advice Letter to the European Commission. EFRAG recommends its adoption.
The Standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognised. IFRS 15 will replace the previous revenue Standards IAS 18 Revenue and IAS 11 Construction Contracts, and their related Interpretations. IFRS 15 is effective for annual periods beginning on or after 1 January 2017, with earlier application permitted.
EFRAG has carried out an evaluation of IFRS 15. As part of that process, EFRAG issued its initial assessment for public comment and, when finalising its advice and the content of this letter, it took the comments received in response into account. EFRAG’s evaluation is based on input from standard setters, market participants and other interested parties, and its discussions of technical matters are open to the public.
EFRAG supports IFRS 15 and has concluded that it meets the requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards in that it: