Some challenges in recognition of revenues in accordance with IFRS 15

Abstract

Implementation of the new IFRS 15 - Revenue from Contracts with Customers, starting from 01. January 2018, changes significantly financial reporting of many reporting entities from different industries. In this paper the main requirements of the new standard in terms of how recognize revenues are analysed. In addition, we point out some implementation specifics in different industries. We also point to some particular challenges in the implementation of certain solutions of the Standard. The aim of the paper is to analyze the possible challenges in the first and each subsequent application of IFRS 15, ant to point out the need for good knowledge of revenue recognition criteria not only by accountants, but also by users of financial statements.

Keywords

• revenues
• ifrs
• control
• contract costs
• disclosures