The new revenue recognition standard’s impact on brokers, fund managers

International Financial Reporting Standards (IFRS) 15, Revenue from Contracts with Customers, is one of the latest global accounting developments that will have an impact on broker-dealers in securities and asset management entities. IFRS 15 may potentially change certain revenue recognition practices of brokers and fund managers, particularly in accounting for trade commissions, management and performance-based fees, and upfront fees. These potential changes may also affect their earnings per share ratio and other performance measures.