Hi all,
Enterprise and FBI team has completed one of the changes on hotel product related reports to comply with IFRS 15. By the new implementation of accounting standard IFRS 15, there is change in revenue recognition time. Previously, it is assessed using risk-and-reward approach, but under the IFRS 15, it use transfer-of-control approach. "Control" is the ability to direct the use of, and obtain substantially all the remaining benefits from, the goods or services (or prevent others from doing so).
In the new revenue standard, booking services for Hotel is considered complete on the booking date with a right of return. So, the revenue recognition time should be changed from check out time to non cancellable (or non-refundable) date. Constraint to be applied to limit revenue recognition to the extent it is highly probable that no significant reversal will occur.
Please find the detail changes, background, testing result, and retrospective adjustment on following wiki: https://29022131.atlassian.net/wiki/spaces/FBI/pages/307789825/IFRS+15+Implementation+-+Hotel+Revenue+Recognition+Timing
All above report changes already effective on production system since 6 March 2017. Hence, you may start to start recording AJE for whole March 2018 using this new revenue recognition timing.
Don’t hesitate to contact @edith and @jessica.jessica if you have any suggestions or questions.
Regards,
FBI Team