BC491 The boards concluded that the issuance of IFRS 15 [As indicated in footnote 1, unless indicated otherwise, all references to IFRS 15 in this Basis for Conclusions can be read as also referring to Topic 606 in the FASB's Accounting Standards Codification.] achieves their objectives as outlined in paragraph BC3. This is because IFRS 15 provides a robust and comprehensive framework that:

(a) will apply to a broad range of transactions and industries and will improve the comparability of the recognition of revenue across industries and jurisdictions;

(b) can be applied to complex transactions and evolving transactions, resulting in greater consistency in the recognition of revenue; and

(c) will require enhanced disclosures that will improve the understandability of revenue, which is a critical part of the analysis of an entity's performance and prospects.

BC492 In the light of these achievements, the boards determined that the issuance of IFRS 15 would result in an overall improvement to financial reporting. The boards also concluded that these benefits would be ongoing and would justify the costs of implementing IFRS 15 (for example, systems and operational changes) that would be incurred primarily during the transition from previous revenue recognition requirements.