IASB and FASB have issued IFRS 15 in May 2014 applying to annual reporting period beginning on or after 1 January 2018, but earlier application is permitted.

The IFRS has identified a five step model framework, which considers performance objectives and transaction price. The objective of IFRS 15 is to clarify the principles of recognising revenue, how and when to recognise the revenue, as well as requiring the entities to provide users of financial statements with more informative and relevant disclosures.