Possible Impacts of Application of the New Accounting Standard IFRS 15 Revenue from Contracts with Customers: A Case Study
Marta Stárová, Helena Čermáková, Enikő Lőrinczová, Miroslava Navrátilová, Markéta Beranová

Language: en
Last modified: 2018-04-10


The new accounting standard IFRS 15, issued in 2014 and effective from 2018, brings a consistent guidance of revenue recognition and reporting.  The aim of the paper is to point out the possible implications of the application of the new International Financial Reporting Standard 15 to the entities accounting and to demonstrate on case study examples the possible accounting treatment. The case study is based on the practice of a prominent joint stock company operating in the Czech Republic, where existing customer contracts were analysed and areas with need of modification were identified. The results proved that the application of IFRS 15 brings changes into the current practice as to the amount and the time of the revenue recognition in the chosen company, where the most significant changes are related to the allocation of a transaction price, to the sales with the right of return and licences with the right to use. IFRS 15 provides a more systematic view of revenue recognition, and additionally, requires a higher degree of professional judgment.


Revenue; Contracts with Customers; Recognition; Reporting; Provision; Cost of Sales

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