AASB 15 Revenue

Taking a closer look at the Revenue accounting standard

As organisations continue to expand and change with an evolving economy – whether developing new products and services or embedding technological innovations – this can bring challenges in interpreting and applying the standard.

The revenue standard (AASB 15) was designed to deal with a wide range of transactions and accommodate change.

Complexities when applying the revenue requirements range from judgements involved in principal vs agent analysis, identification and estimating variable consideration, settlement with non-cash consideration to determining whether a revenue contract is onerous.

Not-for-profits

Additional complexities may arise for not-for-profits (NFPs), such as determining which standard to apply (AASB 15 vs AASB 1058 Income for Not-for-Profit Entities) and how to apply a for-profit revenue standard to NFP revenue transactions.

How KPMG can help

We provide a range of services to help with your application of AASB 15, including:

Accounting advice, including ‘on call’ services
Revenue contract structuring advice
Process and IT system change solutions
Industry, regulator’s insights and analysis around disclosures
AASB 15 training.

We outline the tentative and final agenda decisions issued by the IFRS Interpretations Committee.