IAS 18 Revenue (replaced by IFRS 15)
International Accounting Standard 18
Overview of IAS 18
- Issued: in 1982; re-issued in 1993, followed by amendments
- Effective date: 1 January 1993
- Replaced by IFRS 15 effective 1 January 2018
- What it does:
- It prescribes the general rules for recognition of revenue, including exchanges of goods or services.
- It specifies the recognition criteriafor the following categories of revenue:
- Sale of goods;
- Rendering of services;
- Interest, royalties and dividends.
- It brings further guidance on specific transactions in the appendix, such as bill and hold sales, goods shipped subject to conditions, lay away sales; installation fees, advertising commissions, financial service fees, license fees and royalties, etc.
Articles about IAS 18
- Summary of IAS 18 Revenue
- IFRS 15 vs. IAS 18: Huge Change Is Here! - the article illustrates the impact of IFRS 15 and compares it with IAS 18 in a simple example
- Principal or Agent – Revenue or Liability? - this article provides a deeper analysis of a principal vs. agent relationship with accent on revenue recognition
Questions and Answers
For more practical questions and answers related to revenue recognition, please refer to IFRS 15 Revenue from Contracts with Customers.
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