MFRS 15 / IFRS 15
Recurring revenue recognition review
Testing whether invoices, usage, and contract modifications are recognised in the right period and for the right amount under MFRS 15.
Billing cadence is not the same as revenue. A Malaysian entity that invoices annually in advance still has to spread that cash under MFRS 15. An entity that bills in arrears on usage may be recognising too late, or recognising unconstrained estimates that will not survive audit.
We read the billing product catalogue against the contract library. Where the application’s “revenue recognition” module is switched on, we test whether its rules match the accounting policy. Where it is switched off, we test the spreadsheet or ERP allocation that sits beside it.
The review is designed so a statutory auditor can place it on the file: objectives, population, sampling method, and results. We do not issue a statutory audit opinion.
Who it is for
Groups preparing MFRS or IFRS accounts with material deferred or unbilled subscription revenue.
Typical fee note
From RM 18,000 for a single performance-obligation model. Multi-element contracts are quoted separately. Fees are quoted in writing after scoping. This page is not a checkout.
Scope we usually test
- Identification of performance obligations in standard and non-standard contracts
- Timing of recognition for prepaid annual plans versus in-arrears monthly plans
- Usage-based variable consideration and constraint
- Contract modifications: upgrades, downgrades, mid-term discounts
- Presentation of contract assets, contract liabilities, and receivables
What you receive
- Policy-to-system mapping
- Sample testing papers for recognition and cut-off
- Schedule of proposed timing differences
- Management letter on remaining judgement areas