On Recognition And Measurement Of The Revenues According To Ifrs 15

In May 2014, the Board of the International Financial Reporting Standards accepted IFRS 15 – “Revenues from Contracts”. This Standard will change radically the established methods of recognition and measurement of the revenues gained by the entities of various fields, that will have a material effect on determination of a total revenue. The requirements set forth in IFRS 15, create the common conceptual grounds, that will improve reflection in the financial statements of the information regarding volume, nature, distribution in time, uncertainties and cash turnover of the revenues received from the contracts with clients, as well as comparability of these indicators for the enterprises of different levels and branches. The Article provides discussions on separate provisions of the Standard and, analyzes their approaches to the terms and methods of recognition of the revenues. An emphasis is made on the issues of accounting and reflection of the contractual assets and liabilities in the financial reporting and also on a common model of recognition of the revenues a basic element of which is the contracts concluded with clients. A detailed analysis of 5 steps of recognition of the revenue is provided, as IFRS requires for the recognition.