№ 11/2020

Fìnansi Ukr. 2020 (11): 114–128https://doi.org/10.33763/finukr2020.11.114

ACCOUNTING AND AUDIT

KORSHYKOVA Renata ¹, NEBYLTSOVA Oksana ²

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-1367-2450
²SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-8931-2021

IFRS 15: A new approach to entity income recognition

The article is devoted to the study of the requirements of the new international financial reporting standard IFRS 15 Revenue from Contracts with Customers, which came into force on 01.01.2019. The analysis of IFRS 15 is particularly relevant in order to identify and eliminate discrepancies between its content and the requirements of the national accounting standards of Ukraine. This will be the foundation for maintaining the conceptual unity between these two bases for the formation of economic entities` financial statements. The old IAS 18 and IAS 11, which were superseded, did not meet current business conditions and, accordingly, the needs of users of financial statements, in particular, on the one hand, contained duplicate provisions and, on the other hand, did not contain methodological principles for income recognition in many practical situations. The article emphasized that the standard also addressed a significant methodological gap that was inherent in IAS 18 and IAS 11, namely, the allocation of certain obligations that the buyer must perform under the terms of the contract. This is due to the fact that the carrier of revenue is not the contract as a whole, but individual obligations under the contract - performance obligations. Therefore, the division of the contract into separate components becomes especially practical in conditions where one contract covers the supply of several goods, or services, or goods together with services. The article points out that the recommendation for solving numerous problems of revenue recognition, for example when under the contract the customer can receive a discount on future purchases, bonuses, service contracts, guarantees if the customer has the opportunity to purchase them separately, etc., is certainly of great practical value. In general, the artile states that all affected companies face a lot of challenges and work related to the proper implementation of this new standard. The article proves that the new concept will allow users of financial statements to more correctly recognize and measure the amount of revenue for the reporting period. Based on the study, the main aspects that should be taken into account when improving the domestic legal framework in the field of accounting regulation are outlined.

Keywords:revenue, IFRS 15, contract liability, contract asset, contracts with customers, modification, performance obligation

JEL: М41, М48

Korshykova R. . IFRS 15: A new approach to entity income recognition / R. Korshykova, O. . NEBYLTSOVA // Фінанси України. - 2020. - № 11. - C. 114-128.

Article original in Ukrainian (pp. 114 - 128)

Download

Downloads :109

1. Ministry of Finance of Ukraine. (1999). Regulation (standard) of accounting 15 “Income" (Order No. 290, November 29). Retrieved from zakon2.rada.gov.ua/laws/show/z0860-99 [in Ukrainian].
2. IASB. (2012, January 1). IAS 18. Revenue. Retrieved from zakon3.rada.gov.ua/laws/show/929_025 [in Ukrainian].
3. IASB. (2018, May 28). IFRS 15. Revenue from contracts with customers. Retrieved from www.iasplus.com/en/standards/ifrs/ifrs15.
4. Iefimenko, T., Orlova, V., & Samylkin, Ye. (2017). Admission of incomes in correspondance with duities performance. Scientific Notes of Ostroh Academy National University, "Economics" series, 7 (35), 91–95 [in Ukrainian]. doi.org/10.25264/2311-5149-2017-7(35)-91-95
5. Rogozny, S., & Karpachova, O. (2015). Changes in income in IFRS: features of recognition of revenue under contracts. Retrieved from www.researchgate.net/publication/311109113 [in Ukrainian].
6. Khrapova, O. (2014). IFRS 15 “Revenue from Contracts with Customers”: Uniform recognition model and new application guidance. IFRS Bulletin. World experience. Ukrainian practice, 11. Retrieved from ifrs.ligazakon.ua/magazine_article/FZ000636 [in Ukrainian].
7. Deloitte. (n. d.). It is clear about IFRS (practical recommendations for the implementation of new IFRS).Retrieved from www2.deloitte.com/ua/uk/pages/audit/articles/clearly-ifrs-guides.html [in Ukrainian].
8. KPMG. (2014, July). IFRS 15 “Revenue from Contracts with Customers: First-time Adoption”. Retrieved from assets.kpmg/content/dam/kpmg/pdf/2014/08/First_Impressions_Revenue_from_contracts_2014_rus.pdf [in Ukrainian].
9. IASB. (2012, January 1). IAS 11. Construction Contracts. Retrieved from zakon.rada.gov.ua/laws/show/929_017#Text [in Ukrainian].
10. IASB. (2012, January 1). IAS 16. Property, Plant and Equipment. Retrieved from zakon.rada.gov.ua/laws/show/929_014#Text [in Ukrainian].
11. IASB. (2012, January 1). IAS 38. Intangible Assets. Retrieved from zakon.rada.gov.ua/laws/show/929_050 [in Ukrainian].
12. IASB. (2012, January 1). IAS 8. Accounting Policies, Changes in Accounting Estimates and Errors. Retrieved from zakon3.rada.gov.ua/laws/show/929_020 [in Ukrainian].