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Thematic review of companies’ revenues disclosures in 2018

IAASA, Ireland’s accounting enforcer, finds that many companies fail to provide complete information on their revenue disclosures in the 2018 half-yearly accounts


IAASA has today published the results of a desk-top review into the IFRS 15 Revenue from Contracts with Customers disclosures that companies included in their 2018 half-yearly accounts. The review covered the annual accounts of twenty companies listed on Euronext Dublin (Irish Stock Exchange).

The document is available here.



IFRS 15 Revenue from Contracts with Customers became effective on 1 January 2018 and replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. IFRS 15 sets the accounting rules an entity must apply regarding the nature, amount, timing and uncertainty of its revenues.

IFRS 15 must be applied for annual reporting periods beginning on or after 1 January 2018. The 2018 half-yearly accounts were, therefore, the first accounts that companies had to prepare and publish in which mandatory IFRS 15 information was required.


Key findings

IAASA’s desk-top review identified that:

(a)   fifteen of the twenty companies (15/20 or 75%)  included in this desk-top review indicated that the adoption of IFRS 15 had no material impact on their revenue recognition practices;

(b)   seven companies (7/20 or 35%) did not explain the timing of their revenue recognition i.e. whether revenue is recognised at a point in time or over time;

(c)   eight companies (8/20 or 40%) did not explain in the half-yearly accounts the nature and effect of the change in their revenue recognition accounting policy following the adoption of IFRS 15 compared to their revenue recognition accounting policy that was disclosed in their most recent published annual accounts;

(d)   nine companies (9/20 or 45%) indicated that revenue is recognised when control passes to the customer but these companies did not provide a description of the criteria applied to determine when control passes to the customer;

(e)   seven companies (7/20 or 35%) disaggregated revenue recognised from contracts with customers into just two categories, e.g. some of these companies disaggregated revenue on the basis of their two operating segments. It is difficult to determine whether the appropriate level of disaggregation of revenue was disclosed  given the range of products and services that these companies provide and the variety of countries where they have operations;  and

(f)    six companies (6/20 or 30%) did not refer to the disaggregation of the revenue in their half-yearly accounts.


For the examination of companies 2018 full year accounts, IAASA will engage with companies to improve compliance with IFRS 15 including, for example, disaggregation of revenue, disclosure of significant judgements and the identification of performance obligations by issuers.

IAASA reminds preparers, auditors and users of financial statements of the requirements of IAS 34 Interim Financial Reporting to disclose the impact of new and amended financial reporting standards in half-yearly accounts more generally. This reminder is particularly applicable to the disclosures in companies’ 2019 half-yearly accounts regarding IFRS 16 Leases.