An Evaluation of the Impacts of the Adoption of IFRS 15 Revenue From Contracts With Customers

Abstract

The objective of this paper is to evaluate the impact of the adoption of IFRS 15 Revenue from Contracts with Customers on the relevance of general purpose financial reports for Australian listed firms. There was considerable variation in the impacts and the disclosures made relating to transition to the new standard, and that many firms transitioned with minimal disclosures. This included firms where the impacts were material. There is some evidence that the impacts of transitioning to the new accounting standard were targeted at firms where earnings were less relevant. However, there is little evidence that the new standard improved the relevance of earnings generally, and whether it resolved issues with the relevance of earnings is doubtful.

Keywords: Revenue, IAS 15

JEL Classification: M41, G32