The deadline for companies to comply with IFRS 15 revenue recognition standards is approaching on January 1, 2017. However, most companies have not fully implemented the changes needed. According to a survey, for every company that has implemented IFRS 15, four are still assessing the impact and four have not yet started. Companies that are prepared have engaged stakeholders to communicate the financial impacts and efforts required for implementation. Accounting firm EY is assisting companies with getting ready to meet the deadline and comply with IFRS 15.

1. Revenue Recognition: will you be ready on time?
The deadline is approaching fast
Your data, systems and processes
must be in place to comply with IFRS
15 from 1 January 2017 (for calendar
year-ends), if you wish to provide
comparative information.
So far only a minority of companies
are implementing
For every one entity implementing:
►► Four are still assessing the impact
►► Four are stalled or not yet started*
Stakeholder engagement is key
Companies on track for a successful
implementation have high levels of
stakeholder engagement, achieved
through communication of:
►► Financial impacts
►► Implementation efforts required
►► Business impacts
EY is helping companies get ready
* Survey results from 151 senior executives at EY’s 2015
Financial Reporting Outlook Conference
Do you know where
you are in the journey?
Can you show the
financial impact?
?
Will your plan achieve key milestones?
2015 2016 2017 2018
Effective date
Qualitative
IFRS 15
disclosure
Begin gathering
comparative
data
Data, systems and process in
place to comply with IFRS 15
Stakeholder
engagement and
communication are key
2016 is the key year to
prepare and get ready
Survey results from 151 senior executives
at EY’s 2015 Financial Reporting Outlook
Conference
Base camp
Stalled
Addressing
Implementing
Plan
approved
Addressing:
doing impact
analysis
Implementing
changes
Stalled
Yr1 Yr2 Yr3 Yr4 Yr5
Current revenues IFRS 15 revenues
Yr6 Yr7 Yr8 Yr9 Yr10
120
100
80
60
40
20
0
Sample contract:
Current revenue accounting vs. IFRS 15
? ?Have you prioritised
the most significant
implementation impacts?
Have you identified the most
significant business impacts?
Keyaccountingissues
Low High
High
Low
None
Financialstatementimpact(£)
Effort to implement
IFRS 15
outcomes:
compliance,
cost and
risk
Data
governance and
management
IT systems
Finance
External
reporting,
tax
Internal
control
Management
reporting
People,
performance
and reward
Current
change
programmes Procurement
Commercial,
sales and
marketing
And deployed a cross-functional project team?
To discuss how to get started or accelerate your project, contact
Dan Feather at: T: + 44 7747 764 838 | E: dfeather@uk.ey.com, or
Mark Cousins at: T: + 44 7900 703 019 | E: mcousins@uk.ey.com
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