IFRS 15 standards framework

Our client is a company specializing in sustainable development consulting, the implementation of "Nature Based Solutions" projects and the sale of environmental credits. The majority of its business is conducted under long-term contracts accounted for using the percentage-of-completion method. In this context, it is essential to adapt the accounting model to ensure compliance with IFRS 15 on revenue recognition. The main objective of the assignment is to diagnose and improve the project accounting model, notably by integrating short-term risk management, tracking long-term maintenance costs and accounting for carbon credits, while strengthening profitability reporting by program.

The approach was based on an initial diagnosis of the existing accounting model in order to identify any gaps with the normative requirements of IFRS 15. The model was then reviewed to ensure that revenue recognition was aligned with the economic substance of contracts, in line with the standard's five-step model. This revision included detailed analysis of contractual commitments, management of performance obligations and allocation of the transaction price. At the same time, analysis and reporting tools have been developed to enable precise monitoring of profitability by project and program, in relation to the various activities. Risk and cost management have also been integrated to consolidate financial viability over the short and long term.