THE IASB has published for consultation a proposal to defer the effective date of the revenue standard, IFRS 15 revenue from contracts with customers, by one year to 1 January 2018.
The international accounting standards setter said the main reason for the proposed deferral is that the IASB is planning to issue an exposure draft of targeted amendments to the standard, which will include clarifying some of its requirements and adding illustrative examples to aid implementation.
Such targeted amendments have arisen from discussions of the joint Transition Resource Group (TRG), established in conjunction with the US Financial Accounting Standards Board (FASB) to support the implementation of the Standard. The FASB is also currently consulting on a proposal to defer the effective date of its revenue standard by one year.
Feedback on the exposure draft effective date of IFRS 15 (proposed amendments to IFRS 15) is required by 3 July 2015. The IASB will consider the feedback at its July meeting when it expects to take a final decision on whether to change the effective date of the revenue standard.
The revenue standard was issued jointly with the FASB, in May 2014, with an effective date of 1 January 2017.
Early application of the revenue standard will continue to be permitted.