IFRS 15 and ASC 606 Revenue Standards
The core principle of revenue standard ASC 606 and IFRS 15 is that a business recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the payment the business expects to receive in exchange for those goods or services.
Revenue standards ASC 606 and IFRS 15 establish the principles that a business can use to report useful information in financial statements regarding the nature, amount, timing, and uncertainty of revenue and cash flows included in a customer contract.
Revenue standards ASC 606 and IFRS 15 are revenue recognition standards that affect all businesses that enter into contracts with customers to transfer goods or services, including public, private, and non-profit entities.
- Providing a robust framework for addressing issues as they arise
- Increasing compatibility across industries and capital markets
- Requiring better disclosure