The new accounting standard IFRS 15 is coming: for fiscal years beginning on or after 1 January 2018, all companies who use the IFRS accounting standard will have to report their revenues from contracts with customers in accordance with the new standard. This entails numerous new requirements and challenges in finance and accounting, as well as IT.
IFRS 15 – what’s new?
The new IFRS 15 standard affects contracts concluded with customers, regardless of whether they concern the sale of goods or the provision of services. IFRS 15 thus replaces different current standards applied to revenue recognition, such as IAS 18 for sales revenues or IAS 11 for construction contracts. The most important new feature is that sales revenues should be recognised when (or as) a company transfers control of goods or services to a customer at the amount to which the company expects to be entitled. In order to implement this standard, a 5-step model for the determination of deferred revenue will be introduced for the first time.
IFRS15.easy: integrating IFRS 15 in SAP® ERP
IFRS 15 allows the user to consider their contracts with customers either on a contract-to-contract level or by summarising similar contracts in portfolios. Due to the diversity of the IT landscape, companies from the telecommunications sector especially will be overburdened with the adjustment of systems and processes and their costs in the contract-to-contract approach. For this reason, the portfolio approach provides this sector especially with advantages as concerns realisation, maintenance and costs.
With the IFRS15.easy solution and a full range of consultancy services, Sopra Steria promptly and efficiently supports these new requirements. IFRS15.easy is an add-on based on SAP ABAP® which can be simply installed in the SAP® ERP environment.
Specifically, IFRS15.easy offers the following functions:
- Holistic coverage of the contract-by-contract approach, the portfolio approach and the combination of both approaches (hybrid approach)
- Flexible ETL data integration
- Uncomplicated maintenance of portfolios, dimensions, correction functions and formulas without development
- Simple and complex time series-based calculations without programming
- Audit-proof and automatic calculation, booking and extraction of revenue adjustments
- Generation of key figures for simulation scenarios such as planned balance sheets, profit and loss statements and cash flow statements
- Compliance with disclosure requirements as per IFRS 15
- Option of customised enhancement based on user exits
IFRS 15 simply and clearly
IFRS15.easy’s clear structure enables the implementation of new regulations efficiently in terms of time and price. IFRS15.easy can be connected via interfaces to SAP® and other applications flexibly and can be run on both SAP HANA® and conventional databases. Thanks to the clear licensing and maintenance model, all costs of introduction and operation are transparent at all times.
Our consultancy services go far beyond the introduction of the software solution IFRS15.easy: as an SAP partner with more than 20 years of experience in the implementation of complex IT projects in the finance sector, we develop a tailored IFRS 15 implementation strategy. Regardless of whether SAP® systems are used or not. We will also gladly take over responsibility for the whole project life cycle.