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IFRS 15: A critical disruption for businesses in 2018

Year 2018 is bound to witness a lot of critical disruptions in the financial reporting parlance. This is due to the mandatory adoption of IFRS 15 whose effective date is 1st January 2018 by companies.

The disruptions to be caused by this standard is pervasive as it will cut across almost all aspects of the business functions. In addition, a lot of companies are expected to be massively impacted. What differs across various sectors is the degree of complexities on issues to contend with and the efforts required for effective and efficient transition.

The ultimate adoption of this standard will represent a major mile stone in the convergence journey between International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) and it took about six years for both standard setting bodies to eventually agree on uniformity of existing revenue standards under US GAAP and IFRS.