Annual Reports Keepmoat Homes Annual Report 2018 | Page 30

Principal consolidated accounting policies
Adoption of new and
revised standards
At the date of approving these financial statements,
the following new and revised standards and
interpretations were in issue but were not yet effective
(and in some cases had not been adopted by the EU).
None of these revised standards and interpretations
have been adopted early by the Group.
IAS 27 (Amended) – Separate financial statements
IAS 28 (Amended) – Investments in associates and joint
ventures
IAS 40 (Amended) – Investment property
IFRS 7 (Amended) – Financial instruments: Disclosures
IFRS 9 (Amended) – Financial instruments
IFRS 15 (Amended) – Revenue from contracts with
customers
IFRS 16 (Amended) – Leases
With the exception of those mentioned below, the directors
do not anticipate that the adoption of these standards and
interpretations in future periods will have a material effect
on the financial position or performance of the Group and
Company.
IFRS 15 – Revenue from
contracts with customers
In May 2014, IFRS 15 ‘Revenue from Contracts with
Customers’ was issued, effective for periods beginning
on or after 1 January 2018. For the Group, transition to
IFRS 15 will take place on 1 April 2018. IFRS 15 sets out
the requirements for recognising revenue from contracts
with customers. The standard uses a five-step model to
apportion revenue to the individual performance obligations
within a contact.
Under IFRS 15, revenue is recognised based on indicators
of control, rather than solely when risks and rewards
are transferred. This can lead to differences in revenue
recognition on certain sites, based on the specific
contractual arrangements in place. Primarily, for those
sites in respect of which stage payments are received from
registered providers of housing, revenue will be recognised
based on stage of completion rather than on legal
completion. The majority of the Group’s revenue and profit,
including revenue from open market sales, will continue to
be recognised on legal completion.
Management ha