IMPACTS OF IFRS 15 ON REVENUE RECOGNITION IN CONSTRUCTION FIRMS

Abstract

The promulgation of International Financial Reporting Standards 15 (IFRS 15) - Revenue from contracts with customers has affected the revenue recognition of firms. Due to the complexity of business activities such as contracts consisting of various obligations, payments at different times, or long-term contracts, construction enterprises are assessed as one of the businesses significantly affected by the implementation of International Financial Reporting Standards 15. This article focuses on synthesizing the effects of IFRS 15 on revenue recognition of construction enterprises with the hope of providing specific guidance for construction enterprises to solve their specific business cases.