SOCPA Participates in Request for Information Document Regarding the Implementation of IFRS 15
The International Accounting Standards Board (IASB) has published a Request for Information document concerning issues identified in the application of IFRS 15 "Revenue from Contracts with Customers." SOCPA, represented by the Accounting Standards Board, has shared its perspective on the topics presented in the paper. SOCPA believes that the standard requires more practical guidance on complex issues related to revenue recognition, including the identification of performance obligations and whether they are tied to a specific point in time or performed over a period, which assists in determining the transfer of control of goods or services as per the standard's requirements.
For example, SOCPA highlighted the need for more guidance on distinguishing between the roles of principal and agent in contracts, especially when multiple parties are involved, and additional guidance for long-term contracts. Moreover, SOCPA noted that the requirements related to contract modifications need further clarification.
Detailed views of SOCPA can be accessed by clicking here.