As mentioned above, the revenue recognition primarily consists of three different categories. The fourth category of revenue that has been considered as a result of this change is the revenue from contract with customers that has been introduced by IASB. This change will impact companies in different industries as the accounting treatment will change completely. The impact and analysis of the change that has been implemented by AASB in revenue recognition can be analysed with respect to different industries. Some of the major industries wherein the contract is prevalent are Media, Retail, Financial Services and Oil & Gas industry. It is important to note here that this accounting standard has an impact primarily on services industries. The first impact is related to identification of Transaction price: Identifying the cost of transaction is an important aspect under revenue recognition from contracts. This issue is there in every industry in some way or the other. However, there are sector specific solutions that may be required.The second important aspect is the fee associated with certain contracts. This is to say that in certain contracts in which fee cannot be determined, implementation will be an issue.
These are contracts such as performance based fee in case of financial services or barter system which is prevalent in media and entertainment industry. This also provides scope for transferring of illegitimate cost. Further identification of the cost associated with contract of particular goods and services may not be possible. In case of media industry, there might be single contract for multiple products such as rights to films, sale of consumer goods. Similar is the case of retail industry as well where single contract for multiple products can be there. There might be inter related products with single contract. This issue also needs to be addressed. Last issue that might be common to the industries is the treatment of contracts related to commodity exchange. In this, the company might not be the end user and the contract may be for providing services to the end consumer. This is quite prevalent in Oil & Gas industry.