scholarly journals Revenue recognition and measurement in accordance with IFRS 15 and the Polish GAAP – a comparison

2021 ◽  
Vol 45 (3) ◽  
pp. 93-106
Author(s):  
Jerzy Gierusz
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
Revenue Recognition ◽  
Measurement Basis ◽  
Practical Implications ◽  
Over Time ◽  
Time Point

Purpose: The aim of this article is to assess the scale of differences between IFRS 15 and Polish GAAP in terms of revenue recognition. Methodology/approach: The methods used include studies of professional articles and legal acts, including the Polish Accounting Act, Polish Accounting Standards and relevant IAS/IFRS. Findings: The research has proven that Polish regulations can be categorised into two seg-ments. The first segment is KSR 15, which, compared to IFRS 15, contains very similar regulations regarding the general criteria for revenue recognition, including time point and measurement basis. The second segment comprises the Polish Accounting Act and KSR 3, which are based on international standards which are already superseded – IAS 11 and IAS 18, which dealt with revenue recognition over time. Practical implications: The article points out the differences between Polish and interna-tional regulation in terms of revenue recognition, which may play an important role for entities changing the basis for preparing their financial statements from Polish GAAP to IFRS. Originality: The article is the first attempt to compare the scale of similarities between the two sets of regulations in terms of revenue measurement and recognition

scholarly journals Analisis Penerapan Pengakuan Pendapatan Kontrak Konstruksi Berdasarkan PSAK 34

2019 ◽  
Vol 7 (3) ◽  
pp. 391-396
Author(s):  
Riki Subagja ◽  
Didit Pradipto
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Revenue Recognition ◽  
Short Term ◽  
Construction Contracts ◽  
Term Contract ◽  
Short Term Contract ◽  
The One ◽  
Construction Services

This study aims to analyze the implementation of contract revenue recognition based on PSAK 34. The problem that is often faced by companies that are particularly engaged in the field of construction services in the recognition of income is the method of revenue recognition what should be used or applied, because there are differences in recognition between the one method with others. Especially if a project is done is more than a year or the so-called Long-term project. In addition, the presentation of financial statements of income recognition in each accounting period must be reported in accordance with generally accepted Accounting Standards (PSAK No. 34 concerning Construction Contracts). There is only one method used or applied that is the percentage completion method. The percentage method recognizes income with two approaches, based on physical progress and cost-to-cost. PT X as a construction service company uses the percentage of completion method with a physical progress approach (Physical progress) in the recognition of his opinion for both long-term contract and short-term contract. The results of this study conclude that the accounting treatment of the application of revenue recognition of construction services by using the percentage of completion method with physical progress approach on PT X is in conformity with the accounting standards set in PSAK No. 34. However, when compared to revenue recognition using the percentage of completion method with a cost-to-cost approach the firm can recognize the revenue and expenses more to illustrate or show a more proportional calculation because it corresponds to the costs incurred or poured out.   Keywords: revenue recognition, expense recognition, PSAK no. 34

scholarly journals Understanding the Essence of the Accrual Method According to the International Standards

2021 ◽  
pp. 57-66
Author(s):  
Bidzina Grigalashvili ◽  
Keyword(s):  
Subject Matter ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Conceptual Frameworks ◽  
Accounting Practice ◽  
Accounting Policy

Assumption of international accounting standards was considerable event in the accounting practice of Georgia. One of the innovation was the introduction of "accounting policy" and establishment such an element in the compilation of financial statements as "accrual method". Mentioned method was not used in Soviet accounting. Based on his explanation, after the introduction of international standards, the definitions have undergone some changes. The article analyzes the implemented changes, definitions, given in international standards and conceptual frameworks, outlook of various authors concerning subject matter and relevant conclusions drawn. Based on researches have been proven that, the "accrual method" should be used by the enterprise in recognizing / reflecting income and expenses and not in relation to assets and liabilities. Based on the reconciliation and analysis of different definitions, the author's designation of the "accrual method" is proposed.

scholarly journals THE FORMATION CONCEPTUAL BASIS OF ACCOUNTING POLICY FOR DEFERRED REVENUE IN ACCORDANCE TO IFRS 15 «REVENUE FROM CONTRACTS WHITH CUSTOMERS»

2021 ◽  
Vol 3 (27) ◽  
pp. 22-28
Author(s):  
Olga Markus
Keyword(s):  
Financial Statements ◽  
International Standards ◽  
Conceptual Basis ◽  
Significant Component ◽  
Methodological Basis ◽  
Full Compliance ◽  
Scientific Justification ◽  
Accounting Model ◽  
Over Time ◽  
Accounting Policy

Abstract. The article provides a scientific justification of the methodological basis of accounting policies for deferred income and the features of their recognition over time, taking into account the requirements of IFRS 15 «Revenue from contracts whith customers». A method of recognizing revenue from contracts with customers over time is assessed, assessing progress towards full compliance with the obligation to perform. Approaches to the reflection of modifications of the contract and a significant component of financing are formalized. A conceptual accounting model is proposed to disclose information in the financial statements about contractual assets and liabilities. Prerequisites for harmonization of financial statements with the requirements of international standards have been formed.

scholarly journals Hierarchy Of GAAP vs. IFRS The Case Of Bankruptcy Accounting

2012 ◽  
Vol 11 (4) ◽  
pp. 369
Author(s):  
Daniel L. Haskin ◽  
Teresa E. Haskin
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
Accounting Principles

With increased movement toward convergence of major accounting principles between U.S. GAAP and IFRS, the issue of which authoritative source should be referenced becomes increasingly important. An important question is: what is the hierarchy of authority for pronouncements and documents under U.S. GAAP and IFRS? FASB Accounting Standards Codification is the single official source ofauthoritative U.S. GAAP. The hierarchy under international standards is less clear. The IASB promulgated a hierarchy in IAS 8, but interpretation concerning many issues is required. There are several issues not addressed at all by IFRS and one of these is bankruptcy accounting. ASC 852 is the guidance for bankruptcy accounting under U.S. GAAP. This study will investigate whether companies in countries which use IFRS are influenced by the guidance of ASC 852 when confronted with bankruptcy. A review of the financial statements of bankrupt companies in countries using or converting to IFRS was conducted into the reporting of reorganization-type bankruptcies.

scholarly journals Understanding the Essence of the Accrual Method According to the International Standards

2021 ◽  
pp. 30-39
Author(s):  
Bidzina Grigalashvili ◽  
Keyword(s):  
Subject Matter ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Conceptual Frameworks ◽  
Accounting Practice ◽  
Accounting Policy

Assumption of international accounting standards was considerable event in the accounting practice of Georgia. One of the innovation was the introduction of "accounting policy" and establishment such an element in the compilation of financial statements as "accrual method". Mentioned method was not used in Soviet accounting. Based on his explanation, after the introduction of international standards, the definitions have undergone some changes. The article analyzes the implemented changes, definitions, given in international standards and conceptual frameworks, outlook of various authors concerning subject matter and relevant conclusions drawn. Based on researches have been proven that, the "accrual method" should be used by the enterprise in recognizing / reflecting income and expenses and not in relation to assets and liabilities. Based on the reconciliation and analysis of different definitions, the author's designation of the "accrual method" is proposed.

Using international standards as a complement to overcome the unachieved nature of local GAAPs

2016 ◽  
Vol 17 (3) ◽  
pp. 356-376 ◽  
Author(s):  
Mohamed Faker Klibi
Keyword(s):  
Developing Countries ◽  
Accounting Standards ◽  
Document Analysis ◽  
Financial Statements ◽  
Listed Companies ◽  
International Standards ◽  
International Accounting Standards ◽  
Content Type ◽  
Accounting Professionals ◽  
Local Standard

Purpose In recent years, Tunisian listed companies have been preparing their financial statements under a hybrid set of accounting standards; a mixture of national and international standards. The purpose of this paper is to empirically verify to what extent this particular form of de facto compliance with IAS/IFRS (which are not authorized in Tunisia) is used among listed companies. The paper further analyzes accounting professionals’ perception of the current state of Tunisian standards and their attitudes in the absence of relevant national Generally Accepted Accounting Principles (GAAPs). Design/methodology/approach Two methodological approaches were used to answer the paper’s research questions: a document analysis approach and a survey questionnaire. Findings The document analysis revealed that a growing number of listed companies complement local GAAPs by standards they select among IAS/IFRS. The perception study indicated that Tunisian Accounting Standards are, indeed, less suitable for listed companies’ needs. Accordingly, when there is no local standard to measure a specific transaction or event, accounting professionals seem to have no problem in using some IAS/IFRS as a complement to overcome the unachieved nature of local GAAPs. However, the overall findings are likely to suggest that international standards used must not conflict with the Tunisian conceptual framework’s provisions. This means that the use of IAS/IFRS in conjunction with local GAAPs is generally perceived as being beneficial to the quality of financial statements. Research limitations/implications This study may be of interest to many developing countries that have not continued the harmonization of their accounting standards with IAS/IFRS. Future research should focus on the reasons which have led to this unachieved harmonization and the consequences of the normative gap which might emerge. Practical implications Previous research has often shown how difficult it is to apply international accounting standards in developing countries, especially when they do not correspond to the companies’ needs. Difficulties could occur when local standard-setters do not accurately know which new international standards are suitable to the market needs. The study gives some insights suggesting that corporate accounting practices should be analyzed to understand the real needs for new standards. Originality/value The paper highlights the beginning of a de facto convergence with international accounting standards without any support of national de jure convergence. Consideration of this phenomenon may contribute to the understanding of the malaise that characterizes the current accounting standard-setting in developing countries.

Measuring goodwill and noncontrolling interest under the new consolidation accounting standards

2017 ◽  
Vol 15 (2) ◽  
pp. 198-207
Author(s):  
James G.S. Yang ◽  
Frank J. Aquilino
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Accounting Standard ◽  
Content Type ◽  
Net Assets ◽  
Practical Implications

Purpose The accounting standards for consolidated financial statements have been updated recently. The change involves the measurement of goodwill and noncontrolling interest. Under the new accounting standards, goodwill consists of not only the parent company’s portion but also the noncontrolling interest’s share. The noncontrolling interest comprises both the subsidiary’s identifiable net assets and goodwill. In addition, it further changes the treatment of noncontrolling interest from liability to equity. The change indeed has far-reaching consequences on financial statements. This paper formulates an equation to measure goodwill and noncontrolling interest. It also provides some examples for illustrative purposes. The purpose of this paper is to update the financial reporting to the current standards. Design/methodology/approach New accounting standards under FASB #141R and 160. Findings New accounting standards in measuring goodwill and noncontrolling interest in financial reporting. Research limitations/implications The knowledge is useful for accountants and financial analysts. Practical implications Improve the quality of financial statements. Social implications Investors will be better informed. Originality/value This new accounting standard was not explored before.

scholarly journals The Conformity Level of Income Tax Accounting In Jordan with the Requirements of the International Accounting Standard IAS (12) in Terms of Taxable Temporary Differences’ Recognition

2017 ◽  
Vol 10 (5) ◽  
pp. 51
Author(s):  
Ahmad Adel Jamil Abdallah
Keyword(s):  
Income Tax ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Accounting Standard ◽  
Foreign Companies ◽  
International Accounting Standard ◽  
Tax Accounting

The present study aimed to measuring the conformity level of income tax accounting in Jordan with the requirements of ISA (12), and because of increasing to apply the international standards by local and foreign companies in Jordan and Jordanian legislations it’s appear gap between the accounting profit and the tax profit caused Taxable temporary and permanent differences. The study seeks to achieve set of goals represented by studying and analyzing the   compatibility level of income tax accounting by a questionnaire was distributed to 100 income and sales auditors working in the senior and moderate Taxpayers, directorates 85 questionnaires were retrieved and eighty were valid for the study’s purposes, the major results that is the study found the income tax accounting in Jordan does not adhere to the requirements of most of the international accounting standards as there were no presentation to the financial statements, and There was no recognition of Taxable temporary differences and deductible temporary differences (the differences between accounting profit and taxable profit) in the income tax accounting in Jordan.

scholarly journals Valuation of tangible fixed assets pursuant to the Czech accounting law and international accounting standards

2008 ◽  
Vol 53 (No. 10) ◽  
pp. 466-474
Author(s):  
P. Svoboda
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Scientific Discipline ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Tangible Assets ◽  
Fixed Assets ◽  
Value Determination ◽  
The Impact

The valuation of assets is a relatively challenging activity as well as a scientific discipline having an impact on the amount of the reported assets and economic result process. The report deals with the issue of valuation of the tangible fixed assets in the accounting entities compiling the financial statements pursuant to the Czech national legislation and in conformity with the requirements of the International Accounting Standards IAS/IFRS and US GAAP. The substantial differences in the definitions and valuation of the tangible fixed assets in these systems have been determined, indicating the impact on the economy of the accounting entity, both at the primary acquisition and as at the day of the closing of books. Attention has also been paid to the possibilities of recording the value decreases and to subsequent expenses. The analysis of legal regulations was completed with the analysis of the financial statements from selected economic entities. As per the international standards, the main difference consists in the possibility of component depreciation of tangible assets or, on the other hand, the possibility of group depreciation, in the differences in valuation in the event of acquisition paid for and of acquisition by one’s own production and in the possibility to consider the costs of disposal of assets. The subsequent expenses are also construed in a different manner: as per the Czech regulation, they are construed as repairs and maintenance. The substantial difference in comparison with the Czech regulation consists in the possibility of re-valuation of assets upwards as well as the method of actual value determination.

scholarly journals Information of the Financial Statements Disclosures - Case of Albania

2018 ◽  
Vol 4 (3) ◽  
pp. 74-84
Author(s):  
Mirela Ujkani Miti ◽  
Nertila Çika ◽  
Sotiraq Dhamo
Keyword(s):  
Data Analysis ◽  
Literature Review ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Secondary Data ◽  
Financial Statements ◽  
International Standards ◽  
Primary Data ◽  
National Accounting ◽  
Primary Data Analysis

Abstract Since 2008 in Albania, financial reporting is carried out based on international standards and national accounting standards, which are in compliance with International financial reporting standards. In our paper, we want to focus on the "Financial Statements Disclosures" as one of the components of the full package of financial statements. Often there is an erroneous view or attitude that compiles disclosures is something simple and easy. But even for their preparation, the accounting principles and rules should be strictly followed. Through the literature review we will highlight the role and importance of preparing of the financial statements disclosures on financial reporting, the care that should be shown in their preparation and the importance they have for users of financial statements. This also for the fact that, as simple as it may seem in its preparation, this statement has a high level of significance, and may even serve as an "indicator" for detecting fraud, assisting decision-making processes, and so on. The objectives of our paper will be realized through comparative, descriptive and statistical analyzes, using primary and secondary data. Primary data will be provided by the questionnaire addressed to target groups: accountants-because they prepare disclosures; auditors and tax inspectors because they are the users of financial statements disclosures as they use these notes to understand the truth and credibility but also to discover frauds and mistakes. Secondary data will be gained from the literature review and the national accounting standards study of our country. The primary data analysis will serve first to understand the level of preparation of the financial statements disclosures and then to understand the role and importance of their information in the preparation of the full set of financial statements, with the purpose of giving the true and fair view of the activity of the entity, thus contributing to the increase of transparency. Secondary data analysis will serve to understand better the theoretical framework for the disclosures and the information that they carry. In the end, we will provide necessary recommendations regarding the disclosures and information they need to carry to ensure a higher quality of financial reporting.

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