January 21, 2019
Learn about the key findings from Chartered Professional Accountants of Canada (CPA Canada)’s study of the financial impact of the adoption of the new revenue standard by listed companies.
Canadian public companies with calendar year ends began applying a new accounting standard for revenue recognition in the first quarter of 2018. The highly anticipated new standard IFRS 15 Revenue from Contracts with Customers, and its US GAAP equivalent ASC 606, introduced a significantly different accounting model for revenue recognition.
It was expected to have a significant effect on many companies. CPA Canada conducted this study to better understand the impacts of the adoption of the new standard on the financial statements of Canadian companies.
Did the new revenue standard move the needle?
We looked at what 60 Canadian public companies, from a variety of sectors, disclosed about the impact of the new revenue standard on their 2018 first quarter financial statements.