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IFRS 15 Compliance

International Financial Reporting Standard (IFRS) 15 establishes a revenue recognition model for companies operating outside the United States. It governs how these businesses record and report information about the details, pricing and timing of revenue from customer contracts.

IFRS 15 is a more stringent model than ASC 606, and together, they help ensure transparency and comparability both within and across industries around the world. However, because IFRS 15 standards are slightly different than ASC 606, it can introduce additional complexity across the O2C cycle for businesses that operate internationally.

Related terms

ASC 606
Accounting Standards Codification (ASC) 606 is a standard framework for revenue recognition developed by the Financial Accounting Standards Board (FASB) for companies operating within the United States.
Account Reconciliation
Account reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.
Accounts Payable
Accounts payable (AP) refers to the amount of money that a business owes to its suppliers or creditors for goods or services purchased on credit.
Accounts Payable Automation
Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.
Accounts Receivable Aging
Accounts receivable aging is a reporting process that categorizes unpaid invoices and credit memos according to how long they remain outstanding. They are typically sorted into 30-day ranges (0-30 days, 31-60 days, 61-90 days), and this report is how companies calculate their days sales outstanding (DSO) average. 
Accounts Receivable Turnover
The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.