Question
Question When IFRS 15/AASB 15 Revenue from Contracts with Customers was released, the accounting firm BDO issued a short document entitled IFRS Industry Issues: Construction
Question
When IFRS 15/AASB 15 Revenue from Contracts with Customers was released, the accounting firm BDO issued a short document entitled IFRS Industry Issues: Construction & Real Estate. In the document they stated:
The adoption of IFRS 15 may lead to significant changes in the pattern of revenue and profit recognition. Careful consideration and planning will be needed for a range of issues, including the effect on:
- Compliance with bank covenants; and
- Performance based compensations
Required:
Explain the possible reasoning behind the advice above
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Financial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
12th Edition
0538478519, 9780538478519
