Risk assurance

New standard on revenue recognition
IFRS / HKFRS 15 + ASC topic 606 

Jul 2016

The new standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognised. The new model employs an asset and liability approach while the current revenue guidance focuses on an earnings process. Under this new standard, the revenue recognition is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or perform a service), i.e. the satisfaction of performance obligations. Effective date of this new standard is 1st of January, 2018.
Contacts
John Barnes
Partner
Hong Kong
Tel: +[852] 2289 1919 Email
Shelley So
Partner
Hong Kong
Tel: +[852] 2289 2955 Email