IFRS 15 – Revenue From Contracts With Customers

Board consideration

As with any new IFRS implementation, board oversight at an early stage and on an ongoing basis is critical. In order to ensure an effective and efficient implementation process, it is imperative that the board remains engaged in this process and sets the tone for the entity. The board must be aligned with management in setting the direction and strategy for this IFRS implementation. It is important for the board to have a proficient understanding of the new Standard and its potential implications on areas such as financial reporting, KPIs used in benchmarking, loan covenants and remuneration schemes. Without a clear understanding, it may be challenging for the board to maintain an effective level of oversight and to engage in productive and insightful dialogue with management.