The IASB’s Standard IFRS 15 Revenue from Contracts with Customers is now effective (for periods beginning on or after 1 January 2018 with earlier adoption permitted). IFRS 15 will require significant changes to systems and may significantly affect other aspects of operations. The success of IFRS15 implementation is dependent upon the quality and completeness of the client contract data. For many organisations, the data collation stage is the most challenging due to the availability of critical customer contract data such as contract costs, sales with right of return, warranties, renewal options, non-refundable upfront fees, licensing, sales-based or usage-based royalties, repurchase agreements, customer acceptance, etc.
Key words: IFRS15 Revenues Client Contracts High P&L Impact Financial Covenants Compliance