What is IFRS 15?

IFRS 15, Revenue from Contracts with Customers, is an International Financial Reporting Standard that outlines how and when revenue should be recognized. It provides a single, principles-based five-step model to be applied to all contracts with customers. The core principle is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is commonly used by companies worldwide to ensure consistent and comparable financial reporting of revenue.