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Assessing the CFO'S Perspective on IFRS 15 Implementation

Author

Listed:
  • Monica-Laura ZLATI

    (Dunarea de Jos University of Galati, Romania)

  • Cristina Gabriela COSMULESE

    (Stefan cel Mare University of Suceava, Romania)

Abstract

Income recognition is a very complex field that arises from the user's interest in this indicator, and it can even be the basis for errors and scams in its understanding. Even if the principles and standards are stable, the difficulty of income recognition is well known to practitioners, as economic conditions may require new experience, adaptive knowledge, and flexibility. Therefore, as the transition to the new IFRS 15 standard takes place, it is more important than ever to consider how the new IFRS 15 standard will be applied. In light of this, the study aims to suggests evaluating how to determine whether or not companies audited by the Big 4 accounting firms worldwide are aware of the implementation process of IFRS 15 and how it will impact the likelihood of the businesses' performance and profitability. Simultaneously, we wish to pinpoint the primary issues and roadblocks that could come up throughout this procedure. For this purpose, we conduct a quantitative study based on a structured questionnaire consisting of thirty questions that was distributed to the CFOs of the audited companies between 2021-2022. The results of the questionnaire on respondents' perceptions of the application of IFRS 15 are mixed. In addition to the advantages, the application of the new standard is perceived by some companies, especially those in the telecommunications sector, as a disadvantage in terms of the usefulness of additional information, the difficulty of estimating it, the level of subjectivity involved (which would affect the comparability of information) or the complexity and cost of implementation.

Suggested Citation

  • Monica-Laura ZLATI & Cristina Gabriela COSMULESE, 2023. "Assessing the CFO'S Perspective on IFRS 15 Implementation," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 148-156.
    • Handle: RePEc:ddj:fseeai:y:2023:i:3:p:148-156
    DOI: 10.35219/eai15840409374
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    References listed on IDEAS

    as
    1. Laila Aladwey & Ahmed Diab, 2023. "The determinants and effects of the early adoption of IFRS 15:Evidence from a developing country," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2167544-216, December.
    2. Raluca ANDREEV & Mihaela TULVINSCHI & Anamaria-Geanina MACOVEI, 2022. "Analysis Of The Impact Of Social Performance On Financial Performance," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(2), pages 59-65, June.
    3. Saoussen Boujelben & Sameh Kobbi-Fakhfakh, 2020. "Compliance with IFRS 15 mandatory disclosures: an exploratory study in telecom and construction sectors," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 18(4), pages 707-728, July.
    4. Sebastian Onie & Le Ma & Helen Spiropoulos & Peter Wells, 2023. "An evaluation of the impacts of the adoption of IFRS 15 Revenue from Contracts with Customers," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 953-973, April.
    5. Akisik, Orhan, 2020. "The impact of financial development, IFRS, and rule of LAW on foreign investments: A cross-country analysis," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 815-838.
    6. Kabir, Humayun & Su, Li, 2022. "How did IFRS 15 affect the revenue recognition practices and financial statements of firms? Evidence from Australia and New Zealand," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 49(C).
    7. Cristina Gabriela COSMULESE, 2021. "Key Theoretical Aspects Of Applying Ifrs 15," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 17(27), pages 87-94, October.
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