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.
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