International Accounting Standard 18
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 18 Revenue was issued by the International Accounting Standards Committee in December 1993. It replaced IAS 18 Revenue Recognition (issued in December 1982). Limited amendments to IAS 18 were made as a consequence of IAS 39 (in 1998), IAS 10 (in 1999) and IAS 41 (in January 2001). In April 2001 the International Accounting Standards Board resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless and until they were amended or withdrawn. Since then IAS 18 and its Appendix have been amended by the following IFRSs: • • • • • • • • • • • IAS 39 Financial Instruments: Recognition and Measurement (as revised in December 2003) IFRS 4 Insurance Contracts (issued March 2004) IAS 1 Presentation of Financial Statements (as revised in September 2007) 1 amended the terminology used throughout IFRSs, including IAS 18 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate (Amendments to IFRS 1 and IAS 27) (issued May 2008) 2 Improvements to IFRSs (issued May 2008) 3 IFRIC 15 Agreements for the Construction of Real Estate (issued July 2008). 4 SIC-13 Jointly Controlled Entities—Non-Monetary Contributions by Venturers (issued December 1998 and subsequently amended) SIC-27 Evaluating the Substance of Transactions involving the Legal Form of a Lease (issued December 2001 and subsequently amended) SIC-31 Revenue—Barter Transactions Involving Advertising Services (issued December 2001 and subsequently amended) IFRIC 12 Service Concession Arrangements (issued November 2006 and subsequently amended) IFRIC 13 Customer Loyalty Programmes (issued June 2007).
As well as IFRIC 15 the following Interpretations refer to IAS 18:
1 2 3 4
effective date 1 January 2009 effective date 1 January 2009 effective date 1 January 2009 effective date 1 January 2009
INTERNATIONAL ACCOUNTING STANDARD 18 REVENUE OBJECTIVE
SCOPE DEFINITIONS MEASUREMENT OF REVENUE IDENTIFICATION OF THE TRANSACTION SALE OF GOODS RENDERING OF SERVICES INTEREST, ROYALTIES AND DIVIDENDS DISCLOSURE EFFECTIVE DATE 1–6 7–8 9–12 13 14–19 20–28 29–34 35–36 37–38
International Accounting Standard 18 Revenue (IAS 18) is set out in paragraphs 1–38. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 18 should be read in the context of its objective, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
International Accounting Standard 18 Revenue
Income is defined in the Framework for the Preparation and Presentation of Financial Statements as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. Income encompasses both revenue and gains. Revenue is income that arises in the course of ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends and royalties. The objective of this Standard is to prescribe the accounting treatment of revenue arising from certain types of transactions and events. The primary issue in accounting for revenue is determining when to recognise revenue. Revenue is recognised when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. This Standard identifies the circumstances...