When IFRS 15/AASB 15 Revenue from Contracts with Customers was released, the accounting firm BDO issued a short document entitled IFRS Industry Issues: Construction & Real Estate. In the document they stated: The adoption of IFRS 15 may lead to significant changes in the pattern of revenue and profit recognition. Careful consideration and planning will be needed for a range of issues, including the effect on:

 Compliance with bank covenants; and

 Performance based compensations

Required: Explain the possible reasoning behind the advice above.

Answer rating: 100% (QA)

Answer IFRS15AASB 15 applies to all contracts with customers except for contracts covered by other S... View the full answer