|
International Financial Reporting Standard No. 15 Revenue from Contracts with Customers (IFRS 15) is applicable from January 1, 2018. IFRS 15 clearly regulates the use of a five-step model to determine the timing and amount of revenue recognition. Therefore, companies need to pay due attention to the establishment and fulfillment of sales contracts to effectively manage the revenue of customer contracts.
This study aims to explore the impact of the interior design and decoration industry on the recognition of revenue in the financial statements after recognizing revenue in accordance with IFRS 15. Using literature analysis and comparative analysis to collect the complete provisions and appendices of financial accounting standards issued by the International Financial Accounting Standards Committee (The version translated by the Republic of China Accounting Foundation), accounting journal literature and master ’s thesis related to this research topic. By comparing the similarities and differences between ROC Generally Accepted Accounting Principles (ROC GAAP) and International Financial Reporting Standards (IFRSs) in the recognition of financial accounting income. Describe, compare and analyze the differences. At last, we give the relevant recommendations for interior design and decoration industry to whom applied international accounting standards.
Through analysis, we find that the nature of the IFRS 15 income recognition standard allows more estimation and judgment. The higher the degree of estimation and judgment, the higher the risk of currency dance financial reporting and misstatement. Therefore, enterprises need to design a set of procedures to record the required accounting information and strengthen internal control and use external audit supervision functions to reduce human error and errors.
|