IAS/IFRS standards constitute a standardised way of describing the company’s financial performance and position so that company financial statements are understandable and comparable across international boundaries. Additionally, they are particularly relevant for companies with shares or securities listed on a public stock exchange.

IFRS 15 sets out more detailed guidance on variable consideration than IAS 18, with revenue being recognised at the amount expected from the customer which may not necessarily be the same as the invoiced amount. IFRS 15 will not just be a mere accounting change but will have wide spread implications to other businesses areas, e.g. significant IT systems changes will be required, sales contracts/terms may need to be modified, marketing campaigns will need to be reconsidered. The impact on revenue will also have a flow on effect to bonuses, bank convents, dividend payments, and corporate taxes.

In this course, we will discuss the following areas likely to significantly impact manufacturing entities under IFRS 15:

• Point in time’ vs. ‘over time’ revenue recognition, and if revenue is recognised ‘over time’, how progress towards completion is recognised and measured

• Bundling or unbundling performance obligations

• Contract modifications

• Variable consideration (manufacturers’ rebates)

• Accounting for tender costs.

• Adjustments for the effect of the time value of money (‘financing components’)

• Warranties.

I hope that you will benefit a lot from taking this course and applying IFRS 15 in manufacturing industry.