The IASB and FASB have issued their new Standard on revenue recognition – IFRS 15 ‘Revenue from Contracts with Customers’ (ASU 2014-09 in the US). For companies with real estate development, property management or construction activities, IFRS 15 replaces several familiar standards and provides significant new guidance in a number of key areas:
- identifying the contract with a customer;
- identifying the performance obligations;
- determining the transaction price;
- allocating the transaction price to the performance obligations; and
- recognising revenue when or as performance obligations are satisfied.
Filled with practical insights and examples, this publication offers companies operating in the real estate and construction industries helpful guidance in identifying and responding to the most significant impacts of the new Standard.