Effective from 1 Jan 2018, all companies in Singapore are to adopt and implement Financial Reporting Standard 115 (FRS 115) Revenue from Contracts with Customers. Based on the International Financial Reporting Standard 15 (IFRS 15), FRS 115 will bring more clarity in revenue recognition and align to a cohesive standard across more than a hundred countries. Whether you are running/managing a large multinational corporation or a small medium enterprise, FRS 115 will affect the day-to-day operations. It is necessary to equip yourself to ensure a smoother transition in your business.
The core principle of FRS 115 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to for the stated goods or services.