[This Appendix reflects the differences between IFRS 15 and Topic 606 when those standards were issued in May 2014 updated to reflect the issue of Clarifications to IFRS 15 in April 2016.]
A1 IFRS 15, together with the FASB's Topic 606, issued in May 2014 completes a joint effort by the IASB and the FASB to improve financial reporting by creating a common revenue standard for IFRS and US GAAP that can be applied consistently across various transactions, industries and capital markets. In IFRS 15 and Topic 606, the boards achieved their goal of reaching the same conclusions on all requirements for the accounting for revenue from contracts with customers. However, there are some minor differences in the standards as issued in May 2014, which are as follows:
(a) Collectability threshold - the boards included an explicit collectability threshold as one of the criteria that a contract must meet before an entity can recognise revenue. For a contract to meet that criterion, an entity must con
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