Close

Updated Cookies Policy - you'll see this message only once.

Barclays uses cookies on this website. They help us to know a little bit about you and how you use our website, which improves the browsing experience and marketing - both for you and for others. They are stored locally on your computer or mobile device. To accept cookies continue browsing as normal. Or go to the cookie policy for more information and preferences. If you clear your browser history to disable or delete all cookies, your cookie preferences will automatically be reset to accept all cookies. Please go to the cookies policy to make any changes.

IFRS 15 and contract receivables

September 2018

The timing of when businesses receive revenues from customers is in the spotlight thanks to IFRS 15. A good financing facility can mitigate the balance sheet impact of the new standard and improve working capital.

IFRS 15 – Revenue from Contracts with Customers, which specifies how a supplier should record all the revenues from the contracts it enters into with its customers, came into effect for the accounting period beginning on or after 1 January 2018. It applies to the majority of contracts with customers where a business has ongoing performance obligations that a customer pays for.

This reporting standard may have significant balance sheet and P&L implications for businesses since it could significantly delay their ability to recognise and deploy revenue in some cases. One way for them to mitigate this, and improve their working capital position, is by taking advantage of a contract receivables financing solution.