The reflection of the adoption of the International Financial Reporting Standard IFRS 15 (Revenue from contracts with customers) on the financial performance
In 2014, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) agreed to issue a special ifrs 15 revenue recognition standard called "income from contracts with customers" to address problems in both IAS11 "Construction Contracts" and IAS18 "Revenue." The research aims to show the specific requirements for revenue recognition during the five consecutive steps such as (contract determination, performance obligations, transaction price fixing, allocation of transaction price on separate performance obligations, finally recognition of revenue when committed to separate performance), and statement of the implications that will affect financial performance by adopting the IFRS 15 (income from contracts with customers). The importance of the research comes from demonstrating the implications for financial performance through the adoption of the IFRS 15 (income from contracts with clients) and the extent to which it contributes to recognizing the actual value of revenue. In order to achieve the objectives of the research, seven hypotheses have been adopted to test the reflection of the IFRS15 (income from contracts with clients) in financial performance. The research was based on the applied and comparative approach in the analysis of research variables. The research sample consisted of the income list and the list of the financial position of Char stin Trading Company for 2019. The search for several results has been explained, the most important of which helps the results of the financial ratios extracted in accordance with the international standard of financial report IFRS 15 (revenue from contracts with customers) used in making decisions by improving the comparability of the results of financial ratios with the ratios of financial statements to the world markets. The researcher made several recommendations, the most important of which is the interest in teaching accounting staff to know the criteria of international financial reports and in particular the standard of revenue from contracts with customers, to clarify how to determine the contract with customers and the concept of performance commitment and the determination of the price of the transaction and its allocation on performance obligations and recognition of revenue when adhering to performance.
Bloom, R. and Kamm, J, (2014) , " Revenue recognition ", Financial Executive, Vol. 30, pp.48 – 52.
Mazumder, Bidhan Chandra, & Purohit, Kanchan Kuamar. 2018 " REVENUE RECOGNITION FOR LONG - TERM CONTRACTS UNDER IFRS 15: AN ANALYSIS WITH REFERENCE TO THE REAL ESTATE COMPANIES INBANGLADESH", Indian Journal of Accounting (IJA), Vol. 50 (2),.
Ernest & Young (EY) . 2014. "IFRS 15: The Revenue Recognition Standard", (On-line).
FASB , The FASB Accounting Standards Codification TOPIC (606) The Revenue Recognition Standard ,2014.
Tysiac, K. .2017 , Revenue recognition: A complex effort, Journal of accountancy, 223(3), 67,PP.1-6.
Khamis , Amr M. 2016. Perception of Preparers and Auditors on New Revenue Recognition Standard (IFRS 15): Evidence From Egypt. Jurnal Dinamika Akuntansi dan Bisnis Vol. 3(2), pp 1-18.
Haggenmüller, Sascha. 2019.Revenue recognition under IFRS 15 A critical evaluation of predefined purposes and implications for improvement. A thesis submitted to the University of Gloucestershire in accordance with the requirements of the degree of Doctor of Business Administration in the School of Business and Management.
Dalkilic , Af .2015. The real step In Convergence project :A Paradigm from Revenue Recognition to Revenue from Contracts with Coustomer . International Journal of Contemporary Economic and Administrative Science , Issn :4 .
Nicolae , Traced. 2016. Techniques Applied for Accounting of revenue with Derred Payment , Ovidius University Annals , Series Economice Science .
Jonicke , Benson . 2018 . The New Accounting Standard for Revenue Recognition : Do Implementio Issue Differ for Fortune 500 Companies . Journal of Coporate Accounting & finance . Issue 29(2).
Youell , Nicolas . 2016 . New Revenue Recognition Guidel iues :Theres work to be done . Journal of Coporate Accounting & finance . Issue 28(1).
EY, Applying IFRS A closer look at IFRS 15, the revenue recognition standard IFRS 15 Revenue from Contracts with Customers.(Updated September 2019).
IFRS 15 , IFRS® Interpretations Committee meeting, Training Costs to Fulfil a Contract (IFRS 15),2020.
Gitman ,Lawrence J. 2013 , Principles of Managerial Finance ,Tenth Edition.
Fabozzi ,Frank J. fabozzi Series , Finance Capital Market, Financial Management and Investment Management , 2009.
Brigham , Eugene F. Brigham /Michael C. Ehrhardt . 2008, Financial Management Theory and practice .
Brigham , Eugene F. Brigham/ Joel F. Houston, 2009.FUNDAMENTALS OF FINANCIAL MANAGEMENT,12th edition .
International Accounting Standards Board, 2014a, ‘IFRS 15 revenue from contracts with customers’, in IASB (ed.), International Financial Reporting Standards: A guide through IFRS official pronouncements, issued at 01 July 2014 with extensive cross-references and other annotations, Part A1, The IFRS Foundation, London, pp. A683–A743.
International Accounting Standards Board, 2014b, ‘Basis for conclusions on IFRS 15 revenue from contracts with customers’, in IASB (ed.), International Financial Reporting Standards: A guide through IFRS official pronouncements, issued at 01 July 2014 with extensive cross-references and other annotations, Part B2, The IFRS Foundation, London, pp. B295–B1435.
International Accounting Standards Board, 2014c, ‘IAS 1 presentation of financial statements’, in IASB (ed.), International Financial Reporting Standards: A guide through IFRS official pronouncements, issued at 01 July 2014 with extensive cross-references and other annotations, Part A1, The IFRS Foundation, London, pp. A752–A790
International Accounting Standards Board, 2014d, ‘IFRS 13 fair value measurement’, in IASB (ed.), International Financial Reporting Standards: A guide through IFRS official pronouncements, issued at 01 July 2014 with extensive cross-references and other annotations, Part A1, The IFRS Foundation, London, pp. A601–A650.
International Accounting Standards Board, 2015, IASB: Projects – work plan for IFRSs – clarification to IFRS 15 – issues emerging from TRG discussions – discussions and papers, The IFRS Foundation, London, UK, viewed 07 June 2015, from https://cdn. ifrs.org/-/media/feature/meetings/2015/march/trg-rev/rev-rec/march-2015- meeting-summary.pdf
Aggarwal, Ashima,Gour, Thakur, Sundar Mitra, 2013.” Techniques of performance- Appraisal A-Review”, International Journal of Engineering and Advanced Technology, ISSN:2249-8958, volume-2, Issus,3,
Toppo, Ms Leena& Prusty, Mwinkle. 2012.” From performance Appraisal to performance management”, IOSR journal of Business and management, Faculty of Commerce ,Banaras Hindu University, ISSN:2278-487X volume,3,Issus 5 (pp01-06.), INDI .
How to Cite
Copyright (c) 2022 Sagvan Misto Ibrahim, Shler Abdulrahman Rasheed
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors retain copyright
The use of a Creative Commons License enables authors/editors to retain copyright to their work. Publications can be reused and redistributed as long as the original author is correctly attributed.
- The researcher(s), whether a single or joint research paper, must sell and transfer to the publisher (the Academic Journal of Nawroz University) through all the duration of the publication which starts from the date of entering this Agreement into force, the exclusive rights of the research paper/article. These rights include the translation, reuse of papers/articles, transmit or distribute, or use the material or parts(s) contained therein to be published in scientific, academic, technical, professional journals or any other periodicals including any other works derived from them, all over the world, in English and Arabic, whether in print or in electronic edition of such journals and periodicals in all types of media or formats now or that may exist in the future. Rights also include giving license (or granting permission) to a third party to use the materials and any other works derived from them and publish them in such journals and periodicals all over the world. Transfer right under this Agreement includes the right to modify such materials to be used with computer systems and software, or to reproduce or publish it in e-formats and also to incorporate them into retrieval systems.
- Reproduction, reference, transmission, distribution or any other use of the content, or any parts of the subjects included in that content in any manner permitted by this Agreement, must be accompanied by mentioning the source which is (the Academic Journal of Nawroz University) and the publisher in addition to the title of the article, the name of the author (or co-authors), journal’s name, volume or issue, publisher's copyright, and publication year.
- The Academic Journal of Nawroz University reserves all rights to publish research papers/articles issued under a “Creative Commons License (CC BY-NC-ND 4.0) which permits unrestricted use, distribution, and reproduction of the paper/article by any means, provided that the original work is correctly cited.
- Reservation of Rights
The researcher(s) preserves all intellectual property rights (except for the one transferred to the publisher under this Agreement).
- Researcher’s guarantee
The researcher(s) hereby guarantees that the content of the paper/article is original. It has been submitted only to the Academic Journal of Nawroz University and has not been previously published by any other party.
In the event that the paper/article is written jointly with other researchers, the researcher guarantees that he/she has informed the other co-authors about the terms of this agreement, as well as obtaining their signature or written permission to sign on their behalf.
The author further guarantees:
- The research paper/article does not contain any defamatory statements or illegal comments.
- The research paper/article does not violate other's rights (including but not limited to copyright, patent, and trademark rights).
This research paper/article does not contain any facts or instructions that could cause damages or harm to others, and publishing it does not lead to disclosure of any confidential information.