Chief Financial Officers from leading telecommunication companies offer their perspectives on the new IFRS 15 revenue recognition reporting rules and the changing dynamics in telecoms.
The article highlights a number of best practices for those planning their approach to IFRS 15. All operators on the panel reported the common need to:
- Start now. Despite the small delay in required implementation
- Design for flexibility and change in mind
- Focus on opportunities to get value beyond compliance
CFOs on the panel include those from AT&T, MTN and Telekom Malaysia. This displays common challenges faced and approaches taken by different telecommunications providers.
"Embedding these changes in our operating systems will be the most challenging aspect"
Certainly, top firms are looking at how to address the requirements properly, in a way that provides uniformity and control, but that is flexible enough to accommodate future changes to either accounting policy, product bundle and pricing plans.
Interestingly, understanding the business case and value that comes in addition to the direct benefits of a solution is cited as one of the vital project challenges.
"Prospects are using this need for compliance to provide a platform to add value in their ability to accurately forecast revenue on an intra-month basis"
"The long term benefits and added value of [a contract-by-contract] approach though, drive a foundation for next generation revenue management, forecasting and profitability analysis"
To access the article, click here. To learn more about Aptitude Software's calculation engine for revenue recognition or to learn how we are working with global operators to address the new standards, please get in touch with us via firstname.lastname@example.org.