Australia

Revenue Accounting Standards | Australia

Significant changes to revenue recognition, implemented on 1 January 2018 (and deferred for Not-for-Profits to January 2019), require all entities to assess and potentially amend each of their customer contracts.

The new rules under AASB 15 Revenue from Contracts with Customers (AASB 15) apply to all entities, due to Australia’s ‘sector neutral’ standards. The changes require significant judgement involving complex accounting and could disrupt the usual timing of revenue recognition for many entities.

The changes require all stakeholders beyond the finance function to work together to identify the impact of these changes on systems and processes. Teams will need to ensure compliance and reporting has begun at the start of the process, rather than as an after-thought when putting financials together, year-end.

This report, Accounting for Revenue, outlines the main changes, opportunities and consequences of AASB 15 Revenue from Contracts with Customers (AASB 15). It also breaks-down the five-step model to recognise revenue earned from a contract (with limited exceptions), regardless of the type of revenue transaction or the industry that the entity operates in.

For more information on revenue recognition and how it effects your entity, seek advice from your local William Buck office.

<Back

Revenue Accounting Standards AU Specialists

Latest insights from our Revenue Accounting Standards AU team

Navigating the AGM – running the meeting
26 March 2024 | Minutes to read: 4

Navigating the AGM – running the meeting

This article is part of a three-part series on Navigating your Annual General Meetings and provides tips...
The future is digital for contract management systems – and AI will be taking charge
2 February 2024 | Minutes to read: 3

The future is digital for contract management systems – and AI will be taking charge

How can the Board trust the CEO and management? Rarely is such a sentiment written down in...
Understanding early tech company revenues
16 November 2023 | Minutes to read: 2

Understanding early tech company revenues

Tech company revenues – so important for valuations as these companies aim to build and grow. The...