6 PIR of IFRS 15 RFI - Final Comment Letter

| Question 1—Overall assessment of IFRS 15 |
|------------------------------------------|
|                                          |
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19 October 2023
Agenda Paper 6: Appendix A

### Convergence with Topic 606 {: #convergence-with-topic-606 }

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| Question 10—Convergence with Topic 606 |
|----------------------------------------|
| a) How important is retaining the current level of convergence between IFRS 15 and Topic 606 to you and why? |

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<a class="section__global-number" href="#paragraph-A30" id="paragraph-A30">A30</a>The requirements in both standards are substantially converged given that they were developed jointly by the IASB and FASB. There have been a small number of amendments since their publication.

<a class="section__global-number" href="#paragraph-A31" id="paragraph-A31">A31</a>During our outreach, preparers from UK groups with listings in the US supported retaining the current level of convergence between IFRS 15 and Topic 606. Acknowledging the existing level of divergence, one preparer stakeholder noted that further convergence should occur only if the result provides better information to users of the financial statements.

<a class="section__global-number" href="#paragraph-A32" id="paragraph-A32">A32</a>Users who assess US companies and companies reporting under IFRS are in favour of retaining the existing level of convergence between IFRS and US GAAP, as it ensures better comparability of revenue recognition between US companies and companies in other jurisdictions.

<a class="section__global-number" href="#paragraph-A33" id="paragraph-A33">A33</a>We recommend that the IASB and the FASB continue to work together to ensure that there are no significant differences between the two standards.

### Other matters {: #other-matters }

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| Question 11—Other matters |
|---------------------------|
| a) Are there any further matters that you think the IASB should examine as part of the post-implementation review of IFRS 15? If yes, what are those matters and why should they be examined? |
| Please explain why those matters should be considered in the context of this post-implementation review and the pervasiveness of any matter raised. Please provide examples and supporting evidence. |

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<a class="section__global-number" href="#paragraph-A34" id="paragraph-A34">A34</a>We have not identified any further matters in the UK that we think the IASB should examine.

IASB Post-implementation Review (PIR)
IFRS 15 Revenue from Contracts with Customers

October 2023

The UK Endorsement Board (UKEB) is responsible for endorsement and adoption of IFRS for use in the UK and therefore is the UK's National Standard Setter for IFRS. The UKEB also leads the UK's engagement with the IFRS Foundation on the development of new standards, amendments and interpretations.

The comment letter to which this feedback statement relates forms part of those influencing activities and is intended to contribute to the IFRS Foundation's due process. The views expressed by the UKEB in this letter are separate from, and will not necessarily affect the conclusions in, any endorsement and adoption assessment on new or amended international accounting standards undertaken by the UKEB.

[TOC]

## Purpose of this feedback statement

This feedback statement presents the views of UK stakeholders received during the UKEB's outreach activities on the IASB's Post-implementation Review (PIR) of IFRS 15 Revenue from Contracts with Customers and explains how the UKEB's Final Comment Letter addressed those views.

## The IASB's Post-implementation Review

In June 2023, the IASB published the Request for Information on the Post-implementation Review (PIR) of IFRS 15.

The PIR assesses whether the standard is meeting its objectives, can be applied consistently, provides useful information to users, and implementation costs are as expected. The IASB's possible actions following the PIR are to:

<ol markdown="1" type="a">
<li markdown="1">produce educational materials;</li>
<li markdown="1">conduct follow-up research work for possible standard setting; or</li>
<li markdown="1">take no action</li>
</ol>

The IASB's Request for Information (RFI) identified nine areas of the revenue requirements in IFRS 15 on which it was seeking feedback. The UKEB comment letter was responsive to UK stakeholder feedback and focused only on those areas where UK stakeholders expressed particular concerns.

## UKEB Outreach approach

The UKEB's outreach activities took place between June and October 2023 and were conducted to assist the UKEB in developing its Comment Letter.

The outreach approach was underpinned by the UKEB's guiding principles of thought leadership, transparency, independence and accountability.

Due to the project timeline most outreach activities were performed in the early stages of the project and the stakeholder views reflected in the DCL.

Outreach activities included:
*   meetings with preparers, users, accounting firms and regulators, including discussions with the UKEB Advisory Groups and UKEB Rate-regulated Activities Technical Advisory Group;
*   a roundtable event with preparers; and
*   public consultation on the UKEB's draft comment letter.

Three written responses to the UKEB's Invitation to Comment on its DCL were received. These are included in the stakeholder outreach statistics shown in the table.

All comments and views were considered in reaching the UKEB final views on the questions raised.

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| Stakeholder type         | Stakeholders | Organisations represented |
|--------------------------|--------------|---------------------------|
| Preparers                | 17           | 11                        |
| Auditors &amp; Accounting firms | 8            | 5                         |
| Regulators/ Standard setters | 5            | 3                         |
| Users                    | 3            | 2                         |
| Academics                | -            | -                         |
| Professional bodies / committees* | 1            | 8                         |

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*Those committees have multiple members, representing a variety of stakeholder types.

Note: UKEB Advisory Groups are not included in the above table, although one-to-one meetings with, or written responses from, members are included.

## 1. IFRS 15's overall assessment {: #section-1-ifrs-15-overall-assessment }

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| Initial stakeholder views                                                                                                                                                                                                                                                                                                                         | UKEB draft position                                                                                                                                                                                                | Further stakeholder views                                                                                                                                                                                                                         | UKEB final position                                                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stakeholders noted that the Standard was generally working as intended and did not contain any “fatal flaws”. The IFRS 15 requirements were an improvement on the previous revenue requirements.                                                                                                                                                   | Noted the Standard is working as intended, did not contain “fatal flaws” and the core principles result in useful information about an entity's revenue from contract with customers.                                  | Consistent with initial views.                                                                                                                                                                                      | Consistent with draft position.                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                   | Highlighted a number of benefits for companies resulting from the implementation of IFRS 15 e.g. improved internal controls.                                                                                         |                                                                                                                                                                                                                     |                                                                                                                                                                                                                         |
| Views were mixed on improving the understandability and accessibility of the Standard. Whilst some preparers said the IASB should provide education materials and flowcharts explaining the links between the requirements, others were of the view that, given the standard has been applied for a number of years, the usefulness of such education materials is limited. | Noted mixed views on improving the understandability and accessibility of the Standard but did not recommend education materials.                                                                                    | Views were mixed: whilst a few stakeholders thought further illustrative examples would be helpful to improve understanding of specific areas of the standard, most agreed with the UKEB draft position.               | Consistent with draft position.                                                                                                                                                                             |
| Views were mixed regarding the ongoing costs and benefits of applying the requirements in IFRS 15. Whilst a preparer from the telecommunications industry indicated that the ongoing costs of applying IFRS 15 are significantly greater than expected for the benefits of the resulting information to users, others said the ongoing costs are not significant for their companies given the relatively simple business model. | Noted that preparers in some industries (e.g. telecommunications and aerospace) expressed the view that the ongoing costs of applying IFRS 15 continue to be significant.                                              | Mixed views. Some stakeholders emphasised the significant ongoing costs of applying IFRS 15. In particular, these costs are relevant for companies with large volumes of contracts or complex contracts and for emerging business models. | Consistent with the draft position, but added text to provide further information on the nature of companies impacted by increased on-going costs. |
|                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                    | Some other stakeholders noted that whilst implementation was a costly exercise, the ongoing cost is not significant.                                                                                                |                                                                                                                                                                                                                         |

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## 2. Identifying performance obligations in a contract {: #section-2-identifying-performance-obligations-in-a-contract }

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| Initial stakeholder views                                                                                                                                                                                                                                                                                                                             | UKEB draft position                                                                                                                                                                                                                                                                  | Further stakeholder views       | UKEB final position             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|---------------------------------|
| Stakeholders noted that identifying performance obligations in a contract is an area of the Standard that involves significant judgement, in particular applying the concept of 'distinct' to determine whether a separate performance obligation exists.                                                                                                | Noted that overall IFRS 15 provides a clear and sufficient basis to identify performance obligations.                                                                                                                                                                                  | Consistent with initial views.  | Consistent with draft position. |
| Overall, most stakeholders thought the guidance in the Standard is sufficient and the challenges raised result from the need to apply judgement to complex contracts.                                                                                                                                                                                   | Observed a number of challenges associated with identifying performance obligations for certain contracts, specifically identifying a 'distinct' good or service (or a bundle of services).                                                                                             |                                 |                                 |

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## 3. Determining the transaction price {: #section-3-determining-the-transaction-price }

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| Initial stakeholder views                                                                                                                                                           | UKEB draft position                                                                                                                                          | Further stakeholder views                                                                                                                                                                                                                                                                                          | UKEB final position                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A few stakeholders who provided feedback noted that IFRS 15 provides a clear and sufficient basis to determine the transaction price in a contract.                                   | Noted that overall IFRS 15 provides a clear and sufficient basis to determine the transaction price in a contract.                                             | Further Stakeholder feedback observed that the guidance on consideration payable to a customer can be difficult to apply and recommended the IASB clarify the guidance to reduce diversity in practice. Particular examples provided were on an amount payable to a customer not treated as consideration payable to a customer and the presentation of net 'negative' revenue as part of revenue or expense. | Updated the draft position, suggesting clarification to the guidance on consideration payable to a customer and presentation of 'negative' revenue, given the diversity in practice.                                              |
|                                                                                                                                                                                     | Noted that little feedback was received on this topic.                                                                                                       |                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                   |
| The UK regulator observed that preparers find the language used in the Standard on constraining estimates of variable consideration unnecessarily complicated. | Noted the language used in the Standard on constraining estimates of variable consideration is unnecessarily complicated. | Stakeholders did not provide examples where the requirements for constraining estimates of variable consideration are unclear.                                                                                                                                                                      | Consistent with draft position.                                                                                                                                                                                                   |

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## 4. Determining when to recognise revenue {: #section-4-determining-when-to-recognise-revenue }

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| Initial stakeholder views                                                                                                                                                                                                                                                                     | UKEB draft position                                                                                                                                                | Further stakeholder views      | UKEB final position                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stakeholders explained that it was challenging to make an initial assessment of whether revenue should be recognised over time or at a point in time, in particular in the software development and utility industries and for long term, developmental contracts or complex contracts.           | Noted that significant judgement is required to identify whether control passes to the customer over time or at a point in time.                                     | Consistent with initial views. | Enhanced the draft position to add an example to clarify the diversity in practice and a conclusion that UKEB is unable to ascertain how widespread the diversity is or whether users are concerned about it. |

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## 5. Principal versus agent considerations {: #section-5-principal-versus-agent-considerations }

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| Initial stakeholder views                                                                                                                                                                                                                                  | UKEB draft position                                                                                                                                                                                                                                | Further stakeholder views                                                                                                                                                                                                                                                                  | UKEB final position                                                                                                                                                                                                                                                                                                                                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stakeholders indicated that this area of the standard is inherently challenging and judgemental to apply in practice.                                                                                                                                      | Noted that stakeholders clearly identified principal versus agent considerations as an area of IFRS 15 that is challenging and requires significant judgement.                                                                                         | Stakeholders suggested certain paragraphs in the Basis for Conclusion, on the Standard relating to the primacy of the assessment of the transfer of control principle, be incorporated in application guidance in the Standard.                                                                | Builds upon the draft position to expand the indicators. The final letter:<ul markdown="1"><li markdown="1">provides examples of possible additional indicators</li><li markdown="1">requests certain paragraphs in the Basis for Conclusion, on the primacy of the assessment of the transfer of control principle, be incorporated in the Standard.</li></ul> |
| Stakeholders noted the lack of indicators for identifying a principal relating to intangibles, such as media content, with inventory risk being less relevant in intangible and service-based industries.                                                      | Recommended the IASB considers expanding the indicators of control in assessing if an entity is a principal, to cover indicators that are more relevant to services and intangibles.                                                              | Other stakeholders agreed with UKEB recommendation to expand the indicators of control.                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                       |
| Some preparers were concerned that any changes to the requirements relating to principal versus agent consideration might result in companies reassessing their previous judgements.                                                                        |                                                                                                                                                                                                                                                    | Two accounting firms noted that the current guidance should be unchanged, raising concern on cost of changes for stakeholders and the risk of unintended consequences.                                                                                                                       |                                                                                                                                                                                                                                                                                       |
| One accounting firm indicated challenges in the gaming industry in applying the requirements on principal versus agent considerations when identifying the customer. | This topic related to an application issue that was not included in the draft comment letter given that other stakeholders in our outreach did not comment on this issue. | One stakeholder from the pharmaceuticals industry emphasised that identifying the customer can be challenging for some arrangements.                                                                                                                                                         | Consistent with draft position.                                                                                                                                                                                                                                                        |

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## 6. Licensing {: #section-6-licensing }

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| Initial stakeholder views                                                                                                                                              | UKEB draft position                                                                                                           | Further stakeholder views                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | UKEB final position                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stakeholders indicated that overall the guidance on licensing in IFRS 15 is useful and the guidance on the 'right to use' and 'right to access' is clear and sufficient. | Noted the Standard provides a clear and sufficient basis for accounting for contracts involving licences.                   | One stakeholder from the pharmaceuticals industry further observed a few application challenges on transition to the Standard in applying the requirements for licensing, in particular the criteria to determine whether the nature of a licence is to provide a right to access or a right to use the entity's intellectual property (IP). That preparer further noted IFRS 15 led to different accounting for economically the same transactions - sales-based royalties versus legal asset divestment. Feedback from some accounting firms noted the lack of guidance on licence renewals and suggested minor amendments to the guidance to cover licence renewals, to specifically require revenue to be deferred until the renewal period begins, not when the renewal is agreed. This would reduce diversity in practice. | Further stakeholder feedback identified application issues. We have included these examples in the UKEB comment letter. No amendments were proposed on licence renewals as this point was not raised by other stakeholders. |

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## 7. Disclosure requirements {: #section-7-disclosure-requirements }

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| Initial stakeholder views                                                                                                                                                                                                                                       | UKEB draft position                                                                                                                                                                                                       | Further stakeholder views   | UKEB final position             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|---------------------------------|
| Generally, users and regulators noted improvement in the usefulness of information disclosed about revenue under IFRS 15.                                                                                                                                         | Noted that some users of financial statements, regulators and accounting firms observed some improvement in the usefulness of information entities disclosed about revenue after IFRS 15 was implemented.                   | Consistent with initial views | Consistent with draft position |
| Some preparers found some disclosures onerous (e.g. the contract asset and contract liabilities reconciliation, and remaining performance obligations) and questioned the relevance of these disclosures to users. | This topic was not included in the draft comment letter given the usefulness of these disclosures for users. | Consistent with initial views | Consistent with draft position |

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Initial stakeholder views	UKEB draft position	Further stakeholder views	UKEB final position
Preparers supported the choice in transition methods allowed under the Standard.	Noted that the modified retrospective method and practical expedients were commonly applied on the transition to IFRS 15.	Limited feedback on transition.	Consistent with draft position.
Most preparers indicated they used the modified retrospective method, and that the practical expedients reduced the cost and burden of transition to IFRS 15.	Noted that whilst users would prefer a full retrospective method, they did not have significant concerns with companies using the modified retrospective method.
A few preparers indicated the full retrospective method was used given the availability of data.
Users said a full retrospective method is always preferable for their analysis but did not express any concern with the modified retrospective method.

| Initial stakeholder views | UKEB draft position | Further stakeholder views | UKEB final position | |:--------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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| Initial views | Draft position | Consistent with initial views | Consistent with draft position | | The IFRS 15 PIR does not contain any evidence or findings about the impact of the Standard on capital allocation decisions. | The comment letter did not include any comments on capital allocation. | Consistent with initial views | Consistent with draft position | | A few stakeholders, mostly preparers, found that the application guidance in IFRS 15 was helpful when implementing the Standard. | Noted that some preparers found the application guidance helpful. | Consistent with initial views | Consistent with draft position | | Some stakeholders, including some accounting firms, observed that auditors applied IFRS 15 robustly which improved the quality of information disclosed about revenue. | Noted that auditors applied IFRS 15 robustly, improving the quality of information disclosed about revenue. | Consistent with initial views | Consistent with draft position |

Initial stakeholder views	UKEB draft position	Further stakeholder views	UKEB final position
Some stakeholders commented on the importance of convergence with Topic 606 e.g. improved comparability of revenue recognition across entities, industries, jurisdictions and capital markets.	Recommended that the IASB and the FASB continue to work together to ensure that there are no significant differences between the two standards	Stakeholders further emphasised the importance of convergence with Topic 606.	[Consistent with draft position.]
A few stakeholders thought the IASB should consider amending IFRS 15 to converge with US GAAP only if the amendment would significantly improve consistency of application and the usefulness of the resulting information.

Request for Information Post-implementation Review of IFRS 15 Revenue from Contracts with Customers	Published: 29/06/2023
	Comment deadline: 27/10/2023

Step	Mandatory/ optional¹	Metrics or evidence	UKEB Secretariat comments
Work plan
Technical project added to UKEB technical work plan [Due Process Handbook (DPH) [4.29]	Mandatory	Project is included in the UKEB published technical work plan.	Complete: The Post-implementation review (PIR) was included in the UKEB technical work plans from October 2022.

Step	Mandatory/ optional¹	Metrics or evidence	UKEB Secretariat comments
Project preparation [Handbook 5.4 to 5.8]
Project Initiation Plan (PIP) [DPH 5.4 to 5.8]	Mandatory	PIP draft with project outline (background, scope, project objective) and approach to influencing (key milestones and timing) proportionate to the project	Complete: taking a proportionate approach, the Secretariat included mandatory milestones for the project and considered, as appropriate, other milestones and activities.
	Mandatory	Outreach plan for stakeholders and communication approach outlined	Complete: this plan was outlined in the PIP. In addition the Secretariat published a project webpage on the UKEB website.
	Mandatory	Resources allocated	Complete: One project director supported by one project manager, with communications and oversight from a Senior Project Director, as described in the PIP.
	Mandatory	Assessment of whether to set up an ad-hoc advisory group	Complete: Given the scope and nature of the project, it was not considered necessary to set up a separate, ad-hoc advisory group as the existing UKEB Advisory Groups are well placed to provide feedback on this project.
	Mandatory	UKEB Board public meeting held to approve PIP	Complete: The PIP was approved at the 22 June 2023 Board meeting.

| Step | Mandatory/ optional¹ | Metrics or evidence | UKEB Secretariat comments | Initial Initial views | | UKEB response to topics related to the PIR of IFRS 15 | | UKEB response | | Some preparers noted that a few topics in IFRS 15 were difficult to implement and required extensive use of judgement (e.g. identifying separate performance obligations, revenue recognition for variable consideration, the recoverability assessment of contract assets). | Noted that some topics in IFRS 15 were difficult to implement and required extensive use of judgement (e.g. identifying separate performance obligations, revenue recognition for variable consideration, the recoverability assessment of contract assets). | Consistent with initial views | Consistent with draft position | | Some users observed that entities applied IFRS 15 consistently, which improved the comparability of information disclosed about revenue. | Noted that some users observed that entities applied IFRS 15 consistently, which improved the comparability of information disclosed about revenue. | Consistent with initial views | Consistent with draft position | | Generally, users and regulators noted improvement in the usefulness of information disclosed about revenue under IFRS 15. | Noted that some users of financial statements, regulators and accounting firms observed some improvement in the usefulness of information entities disclosed about revenue after IFRS 15 was implemented. | Consistent with initial views | Consistent with draft position | | Some preparers found some disclosures onerous (e.g. the contract asset and contract liabilities reconciliation, and remaining performance obligations) and questioned the relevance of these disclosures to users. | This topic was not included in the draft comment letter given the usefulness of these disclosures for users. | Consistent with initial views | Consistent with draft position | | The IFRS 15 PIR does not contain any evidence or findings about the impact of the Standard on capital allocation decisions. | The comment letter did not include any comments on capital allocation. | Consistent with initial views | Consistent with draft position | | A few stakeholders, mostly preparers, found that the application guidance in IFRS 15 was helpful when implementing the Standard. | Noted that some preparers found the application guidance helpful. | Consistent with initial views | Consistent with draft position | | Some stakeholders, including some accounting firms, observed that auditors applied IFRS 15 robustly which improved the quality of information disclosed about revenue. | Noted that auditors applied IFRS 15 robustly, improving the quality of information disclosed about revenue. | Consistent with initial views | Consistent with draft position |

| Step | Mandatory/ optional¹ | Metrics or evidence | UKEB Secretariat comments | | UKEB Education Session or Initial Assessment | | Project preparation (continued) [Handbook 5.4 to 5.8] | | Education sessions [DPH 4.10] | Optional | UKEB education or initial assessment | Complete: An education session on the proposals was presented at the 27 April 2023 Private Board meeting covering background information on IFRS 15 and the PIR. | | Desk-based research [DPH 5.9] | Optional | Identify relevant research sources and documents | Complete: The Secretariat has reviewed:

• The IASB's work on the Rfl (staff papers, draft Rfl);
• Accounting manuals and press releases for guidance and illustrative examples;
• IFRS Interpretations Committee Agenda Decisions relating to IFRS 15; and
• FRC thematic reviews of IFRS 15 disclosures undertaken in 2018, 2019, and 2020.

| | Communications | | | | | Public board meetings [DPH 5.4, 5.14] | Mandatory | UKEB Board public meetings held to discuss technical project | Complete: The Secretariat gave an update to the Board at the 27 April 2023 meeting.

22 June 2023: the Board approved the PIP.

13 July 2023: the Board discussed and approved the Draft Comment Letter (DCL) for consultation. |

| Step | Mandatory/ optional¹ | Metrics or evidence | UKEB Secretariat comments | | Communications (continued) | | | | Outreach activities [DPH 5.11] | Mandatory | Gather input from users, preparers and accounting firms and institutes, as outlined in the PIP. | Complete: Around 40 stakeholders, representing users of financial statements, preparers of financial statements, accounting firms and regulators were consulted during the project. Further detail can be found in the Feedback statement.

The UKEB received three comment letters which are published on the UKEB website. | | Preparation of documents for public comment | | | | UKEB response to topics related to the PIR of IFRS 15 | Noted that some topics in IFRS 15 were difficult to implement and required extensive use of judgement (e.g. identifying separate performance obligations, revenue recognition for variable consideration, the recoverability assessment of contract assets). | Consistent with initial views | Consistent with draft position | | Noted that some users observed that entities applied IFRS 15 consistently, which improved the comparability of information disclosed about revenue. | Consistent with initial views | Consistent with draft position | | Noted that some users of financial statements, regulators and accounting firms observed some improvement in the usefulness of information entities disclosed about revenue after IFRS 15 was implemented. | Consistent with initial views | Consistent with draft position | | This topic was not included in the draft comment letter given the usefulness of these disclosures for users. | Consistent with initial views | Consistent with draft position | | The comment letter did not include any comments on capital allocation. | Consistent with initial views | Consistent with draft position | | Noted that some preparers found the application guidance helpful. | Consistent with initial views | Consistent with draft position | | Noted that auditors applied IFRS 15 robustly, improving the quality of information disclosed about revenue. | Consistent with initial views | Consistent with draft position |

| Step | Mandatory/ optional¹ | Metrics or evidence | UKEB Secretariat comments | | UKEB - IFRS 15 Post-Implementation Review Timeline - April 2023 to November 2023 | Key Milestones: | | UKEB response to topical elements in the PIR of IFRS 15 | | Education sessions (continued) [DPH 4.10] |