IFRS-15

IFRS 15 SaaS billing / revenue recognition.

Definition

IFRS 15 (International Financial Reporting Standard 15, Revenue from Contracts with Customers) is the international IFRS revenue recognition standard published May 2014 by IASB (International Accounting Standards Board, London) in partnership with FASB (ASC 606 US GAAP equivalent), effective 1 January 2018 IFRS-reporting entities globally, harmonising + replacing IAS 11 Construction Contracts + IAS 18 Revenue + multiple industry-specific IFRS pronouncements ; same 5-step model as ASC 606 + economic substance principles alignment. Platform + workflow detail integration ERP + CRM + general ledger + subscription lifecycle management + plans + pricing + dunning + collections + revenue schedules + accounting + multiple deployments enterprise + SMB customers; native integration Salesforce + NetSuite + SAP + Workday + multiple accelerating SaaS Subscription Economy 2020s+ adoption.

Origin

IFRS 15 published May 2014 by IASB + FASB collaboration ; effective January 2018 IFRS globally ; harmonisation IAS 11 + IAS 18 + multiple industry-specific IFRS predecessors.

Example in context

European company reporting under IFRS-EU applies IFRS 15 to subscription contracts identical ASC 606 5-step model: SAP S/4HANA Revenue Accounting + Reporting RAR module automates IFRS 15 compliant revenue recognition + deferred revenue + contract balances reconciliation; equivalent results to US GAAP ASC 606 sister company same contracts.

Related terms

• ASC 606 — US GAAP equivalent.