Booking of contract revenue set to change

[SINGAPORE] In what may be the biggest change in recent years in the manner companies prepare their accounts, the world's global financial standards setting body has announced a substantial alteration in the way revenue is to be recognised.

The International Accounting Standards Board (IASB) - in conjunction with its American counterpart, the Financial Accounting Standards Board (FASB) - has released a new International Financial Reporting Standard: IFRS 15 on revenue from contracts with customers.

It will affect just about every entity that generates revenue, with the biggest impact expected on telecommunications, technology and real estate companies.