Extended Implementation of IFRS 15 Integrated Model in Countries with an Emerging Economy

Abstract

The mandatory implementation of the International Financial Reporting Standard 15 (IFRS 15) Revenue from Contracts with Customers starting with the 2018 financial year for all those companies using the IFRS has led to a significant change in approaching the accounting policies on profits, especially those related to their evaluation and identification within the financial statement. It is a fact that this significant change has had visible effects on the information disclosed by stakeholders especially given the stressful financial statement when both the costs themselves and the lack of cash flow have amplified these results. Consequently, the aim of the present study is both to evaluate the real impact of the use of the IFRS 15 in different fields of activity and to identify those solutions in terms of solving the issues for each and every significant sector given the stressful financial conditions, especially in those countries with an emergent economy. Thus, the main objectives of the study itself refer to the identification of the framework of applicability of the IFRS 15 and its matrix transposition in the form of a scoreboard based on certain cross-panel correlation keys and the design of an extended modelling methodology for applying the IFRS 15 based on dynamic indicators and indexes. The final results refer to the design of a replicable model of extended usage of the IFRS 15 which will serve all the analysed fields of activity. This up-to-date topic is the result of the implementation of the right model in itself as well as an accurate and objective evaluation of the value of those profits originating from the contracts signed with clients for all those categories of entities using the IFRS irrespective of the type of activity or the business model.