Hi Amit, Unfortunately there is no one direct configuration step to specify transition method. It is more like an approach a company wants to take to transition data from Legacy to New system. If we read the article suggested by Naveen, we see these 2 definitions -
Full retrospective transition method where IFRS 15 is applied retrospectively to each prior reporting period with a calculation of the cumulative catch-up at the start of the comparative period.
Modified retrospective transition method where the cumulative catch-up is calculated at date of adoption.
In my opinion modified retro is the way to go. We did it at our company. One configuration step I can tell you is how to specify dates based on your companies requirements -
- Legacy Data Transfer Date: The legacy data transfer date specifies the switch from your old (legacy) revenue accounting to Revenue Accounting and Reporting. This means that up to this date, revenue is managed in your legacy system, and all revenue that occurs after this date is managed in Revenue Accounting and Reporting.
- Date of Adoption: Date as of which a company adopts a new standard for revenue recognition in its published financial statement.
Both dates are important in modified retro approach. At our company transfer date is 2015 and adoption date is 2018, which basically means all data starting from 2015 until 2018 will be reported on IFRS compliance as cumulative catchup revenue and anything after 2018 will flow through the regular RAR cycle.
I hope this response helps. Thank you!
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