The new standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognised. The new model employs an asset and liability approach while the current revenue guidance focuses on an earnings process. Under this new standard, the revenue recognition is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or perform a service), i.e. the satisfaction of performance obligations. Effective date of this new standard is 1st of January, 2018.