EuroEconomica, Vol 35, No 2 (2016)

Revenue from Contracts with Customers under IFRS 15: new perspectives on practice

Ionica Oncioiu, Alin-Eliodor Tănase


This article offers an overview of the characteristics of IFRS 15 requirements regarding revenue. Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants. This new standard intends to cover the gaps from the previous standards such as IAS 18 and IAS 11. IAS 18 provided limited guidance on many important revenue topics such as accounting for multiple-element arrangements. Fair value measurement and impairment methodology based on the incurred loss model are discussed in this context. This new standard offers detailed guidelines for different type of transactions such as sale with a right of return, like non-refundable upfront fees (and some related costs), principal versus agent considerations and consignment arrangements, others. Based on the results of this analysis, will show these views suggest practitioners ‘confusion about IFRS 15.


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