Ifrs

Difference Between IFRS 15 and IAS 18

Difference Between IFRS 15 and IAS 18

It means that under new IFRS 15, telecom operator must allocate a part of the revenue from prepayment plan with free handset to the sale of handset, too. Under IAS 18, the revenue is defined as a gross inflow of economic benefits arising from ordinary operating activities of an entity.

  1. Why did IFRS 15 replace IAS 18?
  2. Is IAS 18 still applicable?
  3. Which standards does IFRS 15 replace?
  4. Who does IFRS 15 apply to?
  5. What IAS 18?
  6. Is IFRS 15 mandatory?
  7. How many IAS do we have?
  8. Is IAS same as IFRS?
  9. When should you recognize revenue?
  10. When did IFRS 15 come into effect?
  11. Why is IFRS 15?
  12. Why is it difficult to compare IAS 18 revenue to US GAAP?

Why did IFRS 15 replace IAS 18?

Under IAS 18, the timing of revenue recognition from the sale of goods is based primarily on the transfer of risks and rewards. IFRS 15, instead, focuses on when control of those goods has transferred to the customer. ... This may result in revenue being recognized at a different time.

Is IAS 18 still applicable?

This Standard will apply to annual periods beginning or after 1 Jan 2018, and will replace IAS 11 Construction Contracts and IAS 18 Revenue. The new Standard will apply to all contracts with customers except for leases, financial instruments and insurance contracts, which are covered by other accounting standards.

Which standards does IFRS 15 replace?

IFRS 15 was also issued in 2014. It replaces two Standards, IAS 18 Revenue and IAS 11 Construction Contracts. IFRS 15 specifies when and how much revenue a company should recognise, and the information about revenue that the company should disclose in its financial statements.

Who does IFRS 15 apply to?

International Financial Reporting Standard (IFRS) 15: Revenue from Contracts with Customers was introduced by the International Accounting Standards Board to provide one comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across ...

What IAS 18?

IAS 18 Revenue outlines the accounting requirements for when to recognise revenue from the sale of goods, rendering of services, and for interest, royalties and dividends. ... IAS 18 was reissued in December 1993 and is operative for periods beginning on or after 1 January 1995.

Is IFRS 15 mandatory?

[IFRS 15:1] Application of the standard is mandatory for annual reporting periods starting from 1 January 2018 onwards. Earlier application is permitted.

How many IAS do we have?

The following is the list of IFRS and IAS that issued by International Accounting Standard Board (IASB) in 2019. In 2019, there are 16 IFRS and 29 IAS. IAS will be replace IFRS once it is finalize and issue by IASB.

Is IAS same as IFRS?

International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) are the same. The difference between them is that IAS represents old accounting standard, such as IAS 17 Leases . While, IFRS represents new accounting standard, such as IFRS 16 Leases.

When should you recognize revenue?

According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. In cash accounting – in contrast – revenues are recognized when cash is received no matter when goods or services are sold.

When did IFRS 15 come into effect?

IFRS 15 Revenue from Contracts with Customers was issued by the IASB on 28 May 2014 and applies to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2018.

Why is IFRS 15?

The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.

Why is it difficult to compare IAS 18 revenue to US GAAP?

recognized as assets. Why is it difficult to compare IAS 18, Revenue, to U.S. GAAP? ... Revenue is not defined under U.S. GAAP.

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