European Financial and Accounting Journal
European Financial and Accounting Journal
European Financial and Accounting Journal
Faculty of Finance and Accounting, University of Economics, Prague

European Financial and Accounting Journal 2016/3

Do Czech Companies Disclose Revenue in Accordance with IFRS Requirements?

DOI: https://doi.org/10.18267/j.efaj.163

[full text (PDF)]

Kateřina Knorová

Revenue is one of the key indicators informing users of financial statements about company´s performance. The different approaches to revenue recognition are analysed in the first part of this paper. The second part addresses the convergence of US GAAP and IFRS in the area of revenue recognition and examines the new converged revenue standard IFRS 15. The third part focuses on the IFRS disclosure requirements set by the current standard IAS 18 and compare to the new ones defined by IFRS 15. The empirical study analyses consolidated financial statements of Czech listed companies and assesses the compliance with current revenue disclosure IFRS requirements.

Keywords: IAS 18, IFRS 15, Revenue disclosure, Revenue recognition

JEL Classification: M41

References:

Barker, R., 2010. On the definitions of income, expenses and profit in IFRS. Accounting in Europe 2, 147-158. DOI: 10.1080/17449480.2010.511892.

Bohusova, H., Nerudova, D., 2015. US GAAP and IFRS convergence in the area of revenue recognition. Economics and Management 14, 12-19.

Fosbre, A. B., Kraft, E. M., Fosbre, P. B., 2009. The Globalization of Accounting Standards: IFRS vs. US GAAP. Global Journal of Business Research 1, 61-71.

IASB, 2009. International Financial Reporting Standards 2009. International Accounting Standard Board, London.

IASB, 2014. Basis for Conclusions on IFRS 15 Revenue from Contracts with Customers. International Accounting Standard Board, London.IASB, 2014. IFRS 15 Revenue from Contracts with Customers. International Accounting Standard Board, London.

Mejzlík, L., Arltová, M., Procházka, D., Vítek, L., 2015. The Adoption of International Financial Reporting Standards in the Czech Republic and Its Impact on Corporate Taxation. Politická ekonomie 7, 811-832. DOI: 10.18267/j.polek.1036.

Nobes, C., 2012. On the definitions of income and revenue in IFRS. Accounting in Europe 1, 85-94. DOI: 10.1080/17449480.2012.664395.

Wagenhofer, A., 2014. The role of revenue recognition in performance reporting. Accounting and Business Research 4, 349-379. DOI: 10.1080/00014788.2014.897867.

Wüstemann, J., Kierzek, S., 2005. Revenue recognition under IFRS revisited: conceptual models, current proposals and practical consequences. Accounting in Europe 1, 69-106. DOI: 10.1080/09638180500379111.