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IFRS15 revenue impact

IFRS15 revenue impact

Silly question time...

Generally the new IFRS15 revenue standard may have an impact on external customer contracts on how revenue is recognised depending on your business, but would it have an impact on transfer pricing agreements between group entities? My original thought process would be no. thanks in advance for any thoughts / comments

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By ms998
08th Dec 2017 11:44

Usually TP is charged on services provided by group companies. In most businesses i've seen the services provided are costed and then the relevant markup applied.

If the services you provide fall within IFRS15 then I would have thought the TP would also fall within IFRS15. Not knowing IRS too well, i would have thought only issues would be around software development or such like with staged payments. Services such as accounting/legal/other such services are provided and billed in arrears.

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