Disclosures for IFRS 15 Revenue from contracts with customers in respect of transition options:
|IAS 1:117(b)||Disclose accounting policies that are relevant to understanding the financial statements (i.e. those for material items).|
|IFRS 15:119||Disclose information about performance obligations in contracts with customers, including a description of all of the following:|
|IFRS 15:123||Disclose the judgements, and changes in the judgements, made in applying this Standard that significantly affect the determination of the amount and timing of revenue from contracts with customers. In particular, an entity shall explain the judgements, and changes in the judgements, used in determining both of the following:|
|IFRS 15:124||For performance obligations that an entity satisfies over time, disclose both of the following:|
|IFRS 15:125||For performance obligations satisfied at a point in time, disclose the significant judgements made in evaluating when a customer obtains control of promised goods or services.|
Suggested example disclosure: Transition to new IFRS 15 Disclosures
Based on these requirements the following example is suggested:
A vendor has a single four year contract which runs from 1 January 2015 to 31 December 2018. The total consideration receivable is fixed at CU 2,000,000 and, under current IFRSs, is being recognised over that four year period as follows:
2015: CU 800,000
2016: CU 400,000
2017: CU 400,000
2018: CU 400,000
Under IFRS 15, revenue would have been recognised evenly over the four year period (CU 500,000 in each year).
Under each of the transition options, the effect would be:
Retrospective equity adjustment Transition to new IFRS 15 Disclosures
The retrospective equity adjustment of 200 is calculated as the difference as at 1 January 2017 between the cumulative amount of revenue recognised in accordance with existing IFRS (1,200, being 800 in 2015 and 400 in 2016) and the amount that would have been recognised in accordance with IFRS 15 (1,000, being 500 in each of 2015 and 2016).
Cumulative effect adjustment Transition to new IFRS 15 Disclosures
The cumulative effect adjustment of 100 is calculated as the difference as at 1 January 2017 between the cumulative amount of revenue recognised in accordance with existing IFRS (1,600, being 800 in 2014 and 400 in each of 2015 and 2016) and the amount that would have been recognised in accordance with IFRS 15 (1,500).