Are you ready for the impact IFRS 15 will have on your Business?
What is the IFRS 15?
The International Accounting Standards Board (‘IASB’) has issued a new Standard on accounting for revenue recognition, IFRS 15, which is applicable for entities reporting in accordance with International Financial Reporting Standards (‘IFRSs’) for periods beginning on or after 1 January 2018 with early application permitted.
IFRS 15 specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures.
But lets be careful out there. The IFRS 15 is a tedious task and may lead to accounting errors and audit findings, which our product aims to automate hence reducing the customer’s time and effort.
Worried about cost effective compliance? We’ve got you covered.
The standard provides a single, principles based five-step model to be applied to all contracts with customers.
The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
To achieve that core principle, an entity would apply the following steps.
- Step 1: Identify the contract with a customer.
- Step 2: Identify the performance obligations in the contract.
- Step 3: Determine the transaction price.
- Step 4: Allocate the transaction price to the performance obligations in the contract.
- Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
Our product can:
- Deliver Revenue Recognition reports as per the IFRS 15 standard
- Customize-able solution to support all the existing customer contract categories
- Provides audit trails for IFRS 15 calculations
- Provides the necessary interfaces for integrating with both upstream and downstream
systems using standard data exchange formats
You’ll think about it?
With the transition required to be completed this year, you don’t have much time to get compliant.
Our solution will ensure:
Minimal impact on your existing accounting processes and systems: RCE is a middleware that brings together events and required contract information from multiple sources through standard interfaces. This means that the rest of the system in the business chain can continue to operate as before.
Accommodating huge increase in data flow, users and transactions: The proposed solution is based on a high performance and scale-able rules processing engine, designed using modular components that can scale independently also and is centered around a robust database for storing and retrieving large volumes of contract data, pricing, audit logs etc.
Full control over rules definition: A highlight of the proposed solution will be a flexible rule editing environment where financial experts can edit the business rules for future revenue recognition scenarios also.
Affordable & Customize-able: Other solutions on the market can cost you up to 8 times more than ours, while others claim to be “customized just for you.” The fact is that our product is perhaps the most affordable solution that delivers everything that IFRS 15 requires today – plus, with full customization, whatever extras you may need at a very competitive price.
We Can Help!
Our purpose built solution for meeting the IFRS 15 reporting needs will ensure that it is in-line with your specific needs for IFRS 15 transition with minimal impact on the rest of your systems