Briefing
IFRS 15 - Software and Cloud services focus
Grant Thornton's global IFRS and industry team's have issued six industry insight publications that look at how the IASB's new revenue guidance (IFRS 15) may impact entities and their industries. This publication focuses on Software and Cloud Services. The new Standard replaces IAS 18 ‘Revenue’, IAS 11 ‘Construction Contracts’, and some revenue-related Interpretations with a control-based model centered around the following 5-steps: •Step 1: Identify the contract with a customer •Step 2: Identify the performance obligations •Step 3: Determine the transaction price •Step 4: Allocate the transaction price to the performance obligations •Step 5: Recognise revenue when/as performance obligation(s) are satisfied Other sectors focus insights are available for Construction, Life Sciences, Real Estate, Manufacturing and Retail.