02/08/2023 - EFRAG seeks users’ input on the effects of the implementation of IFRS 15 Revenue from Contracts with Customers
As part of its outreach on the Post-implementation Review of IFRS 15 Revenue from Contracts with Customers, EFRAG invites users of financial statements to participate in interviews on the effects of the implementation of IFRS 15, which are to be conducted until early October 2023.
On 29 June 2023, the IASB issued a Request for Information for the Post-implementation Review of IFRS 15 (RFI) which is open for comment until 29 October 2023. The RFI states that intended improvements while developing IFRS 15 included: to provide a comprehensive and robust framework for the recognition, measurement, and disclosure of revenue; improved comparability of revenue recognition among entities, industries, jurisdictions, and capital markets; a reduced need for interpretive guidance to be developed case-by-case to resolve emerging issues; and the provision of more useful information through improved disclosure requirements.
In response to the RFI, EFRAG has recently published its Draft Comment Letter, which is open for comments until 11 October 2023. As part of the outreach on the Draft Comment Letter, EFRAG is seeking users’ feedback on the effects of implementing IFRS 15 with a particular focus on the current usefulness of the required disclosures.
As indicated in the Draft Comment Letter, EFRAG has received contrasting feedback on these disclosures from different stakeholders. User feedback received so far is supportive and has, for instance, indicated that these disclosures increased the ability to estimate future cash flows. In contrast, some preparers, auditors, and national standard setters have questioned the usefulness of some of the required disclosures. Hence, before developing a position that takes account of the cost-benefit balance of these disclosures, EFRAG is seeking users’ views on the related concerns and suggestions for improvement made in the Draft Comment Letter.
To this effect, and as part of its outreach, EFRAG invites users of financial statements to participate in one-to-one interviews on the effects of IFRS 15 including its required disclosures. These interviews will be conducted until early October 2023. To express your interest to participate, please send your contact details to either juanjose.gomez @ efrag.org or monica.franceschini @ efrag.org.
