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  • Service: Audit, IFRS
  • Date: 5/22/2014

New revenue standard – How will your top line be affected? 

It’s likely that the new revenue standard will affect the way companies account for revenue. It replaces existing IFRS and US GAAP guidance and introduces a single new revenue recognition model for contracts with customers.

For some, the new standard will have a significant impact on how and when they recognise revenue, with new estimates and judgements, and the possibility of revenue recognition being accelerated or deferred. For others, transition will be easier – but every company will be subject to extensive new disclosure requirements.

 

All companies will need to assess the extent of the standard’s impacts so that they can address the wider business implications. These could include changes to systems and processes, and the knock-on effects – for example, on taxation, dividend payments and bonus plans – of changes to financial ratios.

 

While the 2017 effective date may seem a long way off, decisions need to be made soon – namely, when and how to transition to the new standard. Companies need to start looking at their contracts now.

Revenue – a new standard (2014/09)

Revenue – a new standard (2014/09)
The new revenue standard replaces existing IFRS and US GAAP and is likely to affect the way you account for revenue.

© 2014 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 8 Salisbury Square, London, EC4Y 8BB

 

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