Revenue Recognition: The Complete Resource
Finance and Audit Insights on Global Revenue Standards
Revenue recognition sits at the heart of financial reporting, and it is one of the areas where US GAAP, IFRS, and Ind AS converge most closely yet still diverge in ways that trip up even experienced professionals. This hub brings together everything I have written and am writing on the topic, from the foundational five-step model to industry-specific edge cases and the FP&A implications that matter to finance teams long after the accounting is settled.
Whether you are preparing for an audit, navigating a complex contract, or building revenue forecasts, you are in the right place.
Why Revenue Recognition Is Harder Than It Looks
ASC 606, IFRS 15, and Ind AS 115 were designed to bring consistency. And they largely do. But the five-step model is deceptively simple. Identifying performance obligations in bundled contracts, estimating variable consideration, and determining the right timing of recognition all involve significant judgement. The standard converged; the complexity did not disappear. It just moved.
I cover both the technical accounting and the real-world implications: how recognition choices ripple into EBITDA, how auditors scrutinise management’s estimates, and how FP&A teams need to bridge the gap between booked revenue and the business performance they are trying to forecast and explain.
Key Concepts Quick Reference
| Concept | ASC 606 | IFRS 15 | Ind AS 115 |
|---|---|---|---|
| Core model | Five-step | Five-step | Five-step |
| Effective date | Jan 2018 | Jan 2018 | Apr 2018 |
| Industry guidance | Extensive (FASB ASUs) | Limited | Limited |
| Practical expedients | Multiple | Multiple | Largely same |
Want to discuss a specific revenue recognition challenge? Get in touch. I would love to hear what you are working through.
Published Articles
Foundations
The Free iPhone Illusion: Revenue Recognition under Ind AS 115 and IFRS 15
How bundled contracts work under the five-step model, using a real-world telecom example that makes the abstract concrete. A good starting point for understanding the standard.
Ind AS 118: What Changes When the P&L Gets a New Structure
The successor to Ind AS 1 reshapes how you present your P&L. What is changing, what auditors are watching, and what CFOs need to prepare for.
Related Standards
The Hidden Debt: Is Your Balance Sheet Ready for Ind AS 116?
Lease accounting under Ind AS 116, the EBITDA illusion, balance sheet impact, and why this standard still catches finance teams off guard.
Coming Soon
Articles I am researching and writing. Subscribe via RSS to be notified.
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ASC 606 vs IFRS 15 vs Ind AS 115: Where They Actually Differ
The standards are converged, not identical. Key differences in licences, variable consideration, contract modifications, and more, mapped clearly for global practitioners. -
Revenue Recognition for SaaS and Subscription Businesses
Upfront fees, monthly versus annual subscriptions, multi-element arrangements, and how software companies navigate the standards in practice. -
Variable Consideration: Estimates, Constraints, and Audit Risk
How to estimate variable consideration, apply the constraint, and document your judgements in a way that survives audit scrutiny. -
Revenue Recognition in Construction and Long-Term Contracts
Over-time versus point-in-time recognition, progress measurement methods, contract modifications, and onerous contract provisions. -
Common Revenue Recognition Mistakes: How Auditors Find Them
The recurring errors in practice: cut-off issues, premature recognition, hidden variable consideration, and inadequate disclosures.