Making IFRS 15 revenue recognition easy

Navigating the intricacies of revenue recognition requires more than just basic tools. It requires a sophisticated approach, addressing complexities in ongoing IFRS 15 compliance and delivering precise note disclosures.

Envoria’s IFRS 15 software module combines advanced contract management and revenue recognition software to helo you easily identify, record, and disclose diverse revenue streams. With proven expertise in IFRS 15 accounting, Envoria is your trusted partner for IFRS 15 compliance and seamless revenue recognition.

Envoria IFRS 15 accounting

Cover all IFRS 15-related work steps

Identify contracts

Capture and manage contracts with customers.

  • Contract details
  • Customer information
  • Start and end dates

Identify performance obligations

Determine the performance obligations within each contract.

  • Contract components
  • Additional options
  • Delivery timeline

Determine the transaction price

Establish the price the company will receive for providing the service.

  • Fixed prices
  • Variable components
  • Discounts and bonuses

Allocate the transaction price

Distribute the transaction price among the identified performance obligations.

  • Relative standalone selling
    prices
  • Allocation method
  • Documentation

Recognize revenue

Record revenue when a performance obligation is satisfied.

  • Timing of satisfaction
  • Recording revenue entries
  • IFRS 15 reporting processes

Meet disclosure requirements

Prepare financial statement disclosures and reports in accordance with IFRS 15.

  • Notes to the financial statements
  • Segment reporting
  • Comparative figures

Real-world application of IFRS 15 revenue recognition

Envoria’s IFRS 15 software module has been used extensively in real-world applications. Find best practices here:

  • Revenue allocation between performance obligations/ contract components
  • Allocations of transaction prices
  • Mapping of additional performance obligations
  • Revenue recognition by percentage of completion
  • Revenue recognition over time
  • Consideration of costs and commissions
  • Contract asset/ liability allocation
  • Combination with lease components under IFRS 16
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Special revenue accounting features

Designed to reduce IFRS 15 reporting complexity and increase efficiency.

Full integration

Full API capability (Web/REST) and tool-specific interfaces allow seamlessly integrating our SaaS revenue recognition solution into your existing system landscape.

Automation

Use manual data entry or semi-automated (Excel upload) and automated processes to
accommodate diverse workflows and data availability scenarios.

(Pre) Configuration

Choose from preconfigured reporting templates, or customize KPI dashboards to monitor your data and make insightful comparisons over time.

Certification & auditability

The Envoria software is audit-proof and ISAE 3402 certified to meet the highest security, data management, and audit checks standards.

3 reasons to choose Envoria as IFRS 15 software

Envoria’s IFRS 15 revenue recognitiong software is designed for seamless IFRS 15 alignment with revenue recognition standards, offering fast implementation, full integration, and flexibility to suit your unique needs.

IFRS 15 alignment

Envoria's revenue recognition software is specifically designed to align seamlessly with the principles and requirements of IFRS 15. lts robust features and functionalities cater to the intricate revenue recognition guidelines outlined in the standard, ensuring compliant reporting and minimizing potential errors.

Full integration

Envoria offers a user-friendly interface and customizable options, allowing your company to tailor the software to your unique processes and system landscape. This adaptability ensures a smooth integration of the software into existing (ERP) systems, enhancing efficiency and reducing the learning curve for your employees.

Fast implementation

Initiating the IFRS 15 implementation journey with a 2 hours kick-off meeting, Envoria
will get your new IFRS 15 process up and running in just four weeks. The timeline may
vary based on different factors such as the number of contracts and amendments, as well as your account structures and required reports.

FAQ

The identification and management of distinct performance obligations is a core element of revenue recognition under IFRS 15. Envoria enables structured contract entry and automatically breaks down agreements into distinct performance obligations in accordance with the standard. Predefined input templates, rule-based logic, and decision frameworks are available to support this process. The software also facilitates the documentation of separation criteria and the allocation of transaction prices to individual performance obligations. Through the integrated reporting functionality, all allocations and valuation assumptions can be traced in a fully audit-ready manner and made available for the audit process.

Yes – Envoria's revenue accounting software provides flexible support for all revenue recognition methods in line with IFRS 15. Depending on the nature of the performance obligation, companies can apply either point-in-time or over-time revenue recognition. For over-time projects, the percentage-of-completion method is available, including automated progress tracking based on costs, labor hours, or milestones. Variable consideration such as discounts, bonuses, rebates, or tiered pricing structures can also be configured in detail. The software supports both, the expected value and most likely amount estimation methods, including thresholds, probability weightings, and automated adjustments for changes during the contract term.

Automated integration of contract and revenue data is essential for efficient and accurate revenue recognition. Envoria provides robust API interfaces and standardized import formats for Excel, CSV, and database connections. ERP systems such as SAP, Oracle, or DATEV, as well as CRM and quoting platforms like Salesforce or Microsoft Dynamics, can be seamlessly integrated. The system automatically validates incoming data for completeness, duplicates, and plausibility. Validation rules and mapping functions ensure audit-ready and consistent data transfers across systems and legal entities.

Contract modifications are a routine part of business, including upgrades, downgrades, extensions, or changes in scope. Envoria's revenue accounting software enables complete tracking and documentation of all contract changes. The system automatically determines whether a cumulative catch-up adjustment, a prospective accounting treatment, or separate accounting as a new contract is required. All impacts on existing performance obligations, transaction prices, and revenue recognition are systematically calculated and transparently documented in the audit trail. This ensures that contract histories and revenue calculations remain fully traceable and compliant with audit requirements at all times.

Multinational corporations and corporate groups benefit from the multi-entity and multilingual structure of Envoria’s revenue accounting software. Contract and revenue data can be managed across entities while taking into account local requirements such as currencies, tax rates, and valuation rules. Consolidated reports allow revenue, performance obligations, and contract assets and liabilities to be centrally analyzed and aggregated across reporting units. Centralized management of IFRS 15 processes – including data validation, approvals, and consolidated reporting – is handled via a unified platform that also offers sufficient granularity for local operations.