IAS 18 Revenue

IAS 18 Revenue (replaced by IFRS 15)

Issued: in 1982; re-issued in 1993, followed by amendments
Effective date: 1 January 1993
Replaced by IFRS 15 effective 1 January 2018
What it does:
- It prescribes the general rules for recognition of revenue, including exchanges of goods or services.
- It specifies the recognition criteriafor the following categories of revenue:
  - Sale of goods;
  - Rendering of services;
  - Interest, royalties and dividends.
- It brings further guidance on specific transactions in the appendix, such as bill and hold sales, goods shipped subject to conditions, lay away sales; installation fees, advertising commissions, financial service fees, license fees and royalties, etc.

Summary of IAS 18 Revenue
IFRS 15 vs. IAS 18: Huge Change Is Here! – the article illustrates the impact of IFRS 15 and compares it with IAS 18 in a simple example
Principal or Agent – Revenue or Liability? – this article provides a deeper analysis of a principal vs. agent relationship with accent on revenue recognition

For more practical questions and answers related to revenue recognition, please refer to IFRS 15 Revenue from Contracts with Customers.

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