Ensuring IFRS 15 compliance with automated revenue recognition system
After being acquired by a publicly traded company, Kabam Games was required to comply with IFRS 15 revenue recognition standards. This necessitated differentiating sales of virtual goods into durable and consumable categories for accurate revenue reporting. The challenge required developing a robust system to automate the classification process and ensure compliance.
Sven led the initiative by designing the conceptual and logical models and developing a prototype for the system. He provided detailed design requirements to the Central Technology team and supervised the development process to ensure alignment with IFRS standards. Each year, Sven served as the primary contact for auditor queries, addressing concerns regarding system accuracy and controls, all of which were accepted without issue.
The implemented system automatically classifies revenues as durable or consumable, ensuring precise financial reporting and full compliance with IFRS 15 standards. It has consistently met the rigorous audit requirements of both the company’s and the parent company’s auditors, enhancing transparency and supporting reliable financial reporting processes.
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