IAASA has published an Information Note ‘Requirement to disclose disaggregated revenue’ reminding companies of the requirement in IFRS 15 to disclose the disaggregation of revenue into categories that depict how revenue and cash flows are affected by economic factors. Those disclosures must provide sufficient information to enable users to understand the relationship between the disaggregated revenue and the revenue information that is disclosed for each operating segment.
IAASA has observed that some companies have provided more disaggregated revenue information outside of the financial statements (e.g. in investor presentations or in management reports). In these circumstances, IAASA has challenged those companies and sought explanations as to why further disaggregation of revenue was not provided within the notes to the financial statements.
IAASA reminds directors and Audit Committees that they need to consider the revenue information that is presented outside the financial statements (e.g. in investor presentations or in management reports) when considering the presentation of ‘categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.’ The Information Note may be accessed here.