Download or read book The Amendment of Revenue Recognition Guidance in International Financial Reporting written by Katja Weiße and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Revenue is a key indicator in assessing a company's financial performance. For years, the accounting standards on revenue recognition under IFRS and US GAAP have been criticized for inconsistencies leading to a lack of comparability at the international level. To harmonize standards and to improve the quality of international financial reporting, the IASB and the FASB formed a joint project to develop a uniform standard for revenue recognition. The overall objective of this work is to analyze how the new standard, IFRS 15, can affect the quality of external reporting. For this, a detailed literature review introducing the concept of accounting quality was conducted. Based on the study of Collins et al. (2002) who developed a list of accounting pronouncements characteristics, a set of potential quality criteria for a high-quality accounting standard was assessed. To evaluate the impact of IFRS 15, the detailed regulations of the standard were explained and significant changes in comparison to the current regulations under IFRS were emphasized. Based on a qualitative exploratory analysis of subject-specific publications, as well as self-conducted expert interviews, the main effects of IFRS 15 were demonstrated. Finally, it was evaluated and assessed whether IFRS 15 fulfills the examined quality criteria and which impact the amendment might have on the quality of information provided to users of financial reports. Findings imply that particularly the informational characteristics, referring to the ability of IFRS 15 to generate and display decision-useful information for users, will improve and therefore have a positive effect on accounting quality. Although companies, particularly in the year of initial application, will face challenges in operational and formal implementation, it is expected that IFRS 15 will improve accounting quality in the long run.