What is IFRS 15, and what was the main change?

IFRS 15 is the revenue-recognition standard for contracts with customers. It replaced industry-specific rules with one principle-based model.

Revenue is recognized when control of a good or service transfers to the customer, not simply when an invoice is issued or cash is received.

Identify the contract, identify performance obligations, determine the transaction price, allocate the price, and recognize revenue as obligations are satisfied.

IFRS 15 can shift revenue timing, margins, backlog conversion, deferred revenue, and QoE adjustments. For software, construction, engineering, and project businesses, it is a major DD topic.