IFRS 15
IFRS 15 is the international accounting standard governing revenue from contracts with customers, issued by the IASB, and it applies the same five-step model as the US standard ASC 606.
The two standards were developed jointly and are substantially converged, which is why the five steps are identical: identify the contract, identify the performance obligations, determine the transaction price, allocate it, and recognise revenue as each obligation is satisfied.
They are separate standards from separate standard-setters, and they are not interchangeable in a filing. Differences remain in a small number of areas, including collectibility assessment and certain disclosure requirements.
Common questions
- Is IFRS 15 the same as ASC 606?
No. They are separate standards issued by different bodies, the IASB for IFRS 15 and the FASB for ASC 606, and a business reports under one or the other depending on its jurisdiction. They were developed jointly and are substantially converged, so the five-step model is the same, but differences remain in areas such as collectibility and disclosure.