THE EFFECTS OF IFRS 15 "REVENUE FROM CONTRACTS WITH CUSTOMERS" ON REFLECTING THE REVENUES OF ENTERPRISES FROM OPERATIONAL ACTIVITIES

Abstract

Objective. The purpose of this research is to carry out a comparative analysis of the advantages and possibility of using IFRS 15 ?Revenue from Contracts with Customers? in comparison with the accounting of revenues according to national accounting standards at Ukrainian enterprises. Methods. The main research methods were general and special scientific approaches to theoretical generalization and grouping, systematization, comparative analysis, logical generalization. Results. The application IFRS 15 ?Revenue from contracts with customers? has the potential to increase the efficiency of the process of accounting of revenues compared to as a traditional system. IFRS 15 is based on the balance sheet approach. Revenue, expenses, and income are recognized as a result of changes in the values of these assets and liabilities. The article analyzes the main characteristics of which are directly relevant for revenue recognition. They include recognition and measurement revenue, presentation and disclosure of items related to customer�s contracts. IFRS 15 has greatly extended the scope of disclosure. To achieve that an entity shall disclose qualitative and quantitative information about all of the following: its contracts with customers, the significant judgements, and changes in the judgements, any assets recognized from the costs to obtain or fulfil a contract with a customer. Scientific novelty. The author substantiates that the use of IFRS 15 ?Revenue from contracts with customers? for revenue accounting will make accounting more efficient and transparent, will ensure increases usefulness and faithfully represent information in financial statements. Practical significance. Revenue from customer�s contracts purports to be a highly reliable outcome from the company�s activities. As such it carries important confirmatory information about actual performance and useful information to forecast future revenues. Key words: revenue, contract, customers, recognition, measurement, disclosure, submission, compensation, receivables.