Post-implementation Review of IFRS 15 Revenue from Contracts with Customers

The IASB met on 24 April 2024 to analyse stakeholder feedback on the Request for Information Post-implementation Review of IFRS 15 Revenue from Contracts with Customers. The analysis covered matters raised by stakeholders in relation to applying:

• IFRS 15 with other IFRS Accounting Standards (Agenda Papers 6A–6E); and

• the requirements in IFRS 15 on the consideration payable to a customer and on a significant financing component in determining a transaction price (Agenda Paper 6F).

Applying IFRS 15 with IFRS 9 (Agenda Paper 6A)

In response to the feedback, the IASB tentatively decided to take no further action on the matters related to:

1. the accounting for price reductions;
2. the accounting for liabilities arising from IFRS 15; and
3. other aspects of applying IFRS 15 with IFRS 9 Financial Instruments.

All 14 IASB members agreed with these decisions.

Applying IFRS 15 with IFRS 3 (Agenda Paper 6B)

In response to the feedback, the IASB tentatively decided to take no further action on the matters related to:

1. the measurement of contract assets and contract liabilities acquired as part of a business combination; and
2. other aspects of applying IFRS 15 with IFRS 3 Business Combinations.

Eight of 14 IASB members agreed with decision (a) and all 14 IASB members agreed with decision (b).

Applying IFRS 15 with IFRS 10 and IFRS 11 (Agenda Paper 6C)

In response to the feedback, the IASB decided to confirm it will consider the priority of the matters related to applying IFRS 15 with IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements in the next agenda consultation instead of as part of the post-implementation review of IFRS 15.

All 14 IASB members agreed with this decision.

Applying IFRS 15 with IFRS 16 (Agenda Paper 6D)

In response to the feedback, the IASB tentatively decided:

1. to gather further evidence in the forthcoming post-implementation review of IFRS 16 Leases on the application matters related to assessing whether the transfer of an asset is a sale in a sale and leaseback transaction; and
2. to take no further action on the matters related to:
   1. the accounting for contracts that contain lease and non-lease components; and
   2. other aspects of applying IFRS 15 with IFRS 16.

All 14 IASB members agreed with these decisions.

Applying IFRS 15 with other IFRS Accounting Standards (Agenda Paper 6E)

In response to the feedback, the IASB tentatively decided: 

1. to classify as low priority the matter related to applying the requirements in IFRIC 12 Service Concession Arrangements on contractual obligations to maintain or restore service concession infrastructure; and 
2. to take no further action on the other matters related to applying IFRS 15 with other IFRS Accounting Standards. 

Seven of 14 IASB members agreed with decision (a). The Chair used his additional casting vote, making the vote eight–seven in favour of the decision. Thirteen of 14 IASB members agreed with decision (b).

Determining the transaction price—Consideration payable to a customer and significant financing component (Agenda Paper 6F)

In response to the feedback, the IASB tentatively decided:

1. to classify as low priority the matters related to the consideration payable to a customer; and
2. to take no further action on the matters related to:
   1. the discount rate for contracts with a significant financing component; and
   2. other aspects of accounting for a significant financing component.

Eleven of 14 IASB members agreed with decision (a) and all 14 IASB members agreed with decision (b).