UPDATE - Chapter 6 Supplement

The International Accounting Standards Board issued a new accounting standard relating to revenue recognition in May 2014, after the tenth edition of the textbook went to press. The new standard (IFRS 15 Revenue from Contracts with Customers) is now included in IFRS and it is effective for fiscal years starting on or after January 1, 2017. It replaces IAS 11 and 18.

Chapter 6 of the text was written with the understanding that IFRS 15 would likely be issued in the near term. The authors included several pages at the end of the chapter under the heading Contract-Based Revenue Recognition Model. The material in chapter 6 gave a high-level overview of the changes and the material still remains correct. Note that ASPE has not changed and so the material in the rest of the chapter relating to ASPE is still current and relevant.

This supplement is meant to go into more detail regarding IFRS 15 in order to prepare students who will be graduating when the standard comes into effect and includes the following additional material:

1. A supplement to Chapter 6 summarizing the impact of the revised IFRS on Revenue Recognition. The supplement goes into a fair bit of detail, giving numerical and other examples. It also includes new end of chapter material that applies IFRS 15. Instructors using the tenth edition of Intermediate Accounting can provide their students with the updated material and questions.
2. The related solutions to the end of chapter material. These are available as a separate file for instructors.