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When EFRAG prepared its endorsement advice on IFRS 15, it considered the effective date. EFRAG noted that a few European companies had raised concerns with EFRAG about the tight timetable. They explained that the pervasive changes they had to make to their information systems would make it difficult to meet the 1 January 2017 effective date. For these entities the 1 January 2017 effective date could thus harm the quality of the financial reporting.
EFRAG also took into account the fact that the IASB in the short-term may issue minor amendments to IFRS 15 (or other types of clarifications) to help implementation. This development may further reduce the time for implementation for affected companies.
As a whole, EFRAG considered nevertheless that these elements were not sufficient to recommend that Europe would postpone the mandatory date of application of IFRS 15 and contribute to a lack of comparability with other IFRS jurisdictions and the US.
The IASB proposal in a context where the FASB is also proposing to postpone the effective date of their standard would both give further time for an implementation of IFRS 15 of quality and maintain comparability between companies applying IFRS or US GAAP.