IFRS 15 - Revenue from Contracts with Customers: Analyse af væsentlige forskelle ved indregning og måling af omsætning mellem IAS 18 / IAS 11 og IFRS 15

Christian Nielsen & Aida Sasivarevic

Student thesis: Master thesis


The purpose of our thesis is to make the readers aware of the new principles governing recognition and measurement of revenue as specified in IFRS 15 and to make them understand the most material differences between those principles and those laid down in IAS 18 and IAS 11. The thesis begins with a short description of the basic accounting theory in order to identify the information needs of the reporting entity and the financial statement user. The purpose of this is to enable the readers of our thesis to gain an understanding of the requirements to which financial reporting standards are subject. The International Financial Reporting Standards (IFRS) are issued by IASB, and so it would be relevant to gain an understanding of IASB's focal points underlying their preparation of new financial reporting standards, including understanding how those focal points support the information needs of reporting entities and financial statement users. We have reviewed the current Standards on revenue, IAS 18 and IAS 11, and the future Standard, IFRS 15, in order to become familiar with their structure and contents. Based on their descriptive paragraphs, we have analysed the most significant differences between those standards. The purpose of the analysis has been to identify the effect of those differences on the recognition and measurement of revenue. In order to know the financial statement users' view on and understanding of IFRS 15, we have analysed the consultation responses submitted to IASB in connection with the publication of the Revised Exposure Draft. The purpose of this analysis is to identify the key issues commented on by the respondents, including identifying the types of sales contracts expected to be affected by IFRS 15. Based on the differences identified between IFRS 15 and IAS 18/IAS 11, we have drawn up two fictitious sales contracts. We have checked the sales contracts for compliance with the provisions of IAS 18/IAS 11 and IFRS 15 to examine the consequences of the differences identified between the Standards on revenue. Our basic conclusion is that IFRS 15 results in financial statement users considering revenue recognition in a new way. The conclusion of our thesis is that various significant differences exist between IFRS 15 and IAS 18/IAS 11 which will affect the method of recognising sales contracts. IFRS 15 does not contain any new rules on recognition and measurement of revenue. This Standard rather provides clarification in this respect, describing a move towards a set of rules eliminating the wide scope for interpretation.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages126