Come January 2018, businesses will need to be compliant with IFRS 15. Here’s what is it, why this is changing, who is affected, and what you should do about it.
Trying to understand the implications of IFRS 15 on your business is like watching an octopus put on socks. Confusing, and maybe a little painful.
IFRS 15 deals with one of your most crucial business metrics–revenue. Your financial statements tell your story to the world—the story of your performance and position within the market, deeply important for investors, employees, and customers.
The US and International Accounting Standards Board (IASB) have worked diligently to produce the International Financial Reporting Standard 15 (IFRS 15), to bring some clarity to a previously disjointed system. You, however, are likely concerned about how you will rise to the task of complying with the new process of revenue-recognition.
As with any new regulation, like last year’s once-in-a-generation China VAT Tax Reform, people often fall into one of two camps. One, proactively asking how will this affect me, or, two, what’s been referred to as the “Ostrich Strategy,” metaphorically sticking their heads in the sand. Many companies fall into a combination of the two—doing nothing out of uncertainty but knowing action is needed.
Large regulatory changes are stressful on a business, team, and individual level, and IFRS 15 is no different. The implications for your business and teams can be substantial, in some cases requiring a complete rethink of strategy. And the costs have the potential to be steep, with the largest expenditure coming in the form of internal resources needed to process these changes.
There is a silver lining. How you manage your contracts can help you quickly implement changes, ensure compliance with the new regulations, and enable your teams.
This report, IFRS 15: How contract management professionals can prepare for changing regulations, will help you understand what changes are happening, who is affected, and what you should do about it, including:
The impacts of IFRS 15 by industry and key things to consider
The 5-step process necessary to comply
How you use your contracts to implement and guarantee organization-wide compliance
Download the full report.