Media | IFRS 15 Revenue – Are you good to go?

Media

IFRS 15 Revenue ? Are you good to go?

June 2017 ifrs

? 2017 KPMG IFRG Limited, a UK company limited by guarantee. All rights reserved.

Are you good to go?

IFRS 15 will change the way many media companies account for their contracts. To help you drive your implementation project to the finish line, we've pulled together a list of key considerations that many companies in your sector need to focus on.

? 2017 KPMG IFRG Limited, a UK company limited by guarantee. All rights reserved.

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For each of the following, documenting your analysis and the conclusions drawn will be essential

? 2017 KPMG IFRG Limited, a UK company limited by guarantee. All rights reserved.

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Licences of intelectual property

Have you determined how to account for your licence arrangements?

Using specific guidance, they are classified as either...

A right to use ?

or

Recognised at a point in time

A right to access ?

Recognised over time

e.g. movies, TV programmes, music

e.g. brands

Restrictions related to time, geography or use are generally attributes of a single licence

? 2017 KPMG IFRG Limited, a UK company limited by guarantee. All rights reserved.

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Royalty arrangements

Do your royalty arrangements qualify for the royalty exception?

Does the royalty relate Yes only or predominantly

to a licence for IP?

No

Is it sales- or usage-based?

No

Yes

Exception applies ?

Recognise revenue as

sales or usage occurs

Apply general guidance

Think about...

Milestone payments | Royalties with a guaranteed minimum | Tiered royalties

? 2017 KPMG IFRG Limited, a UK company limited by guarantee. All rights reserved.

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