Impact of Revenue Recognition Standard in IFRS on Business Management

Abstract

　May 28, 2014, International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) published, as a result of the joint project, IFRS No.15 of “Revenue from Contracts with Customers”. Future, in Japan, it is expected that the IFRS No.15 affect the accounting standards and accounting practices.

　In this paper, first, I mentioned the idea of revenue recognition in IFRS No.15.Then, I pointed out the impact on business management in revenue recognition on agent transaction, product warranty, customer loyalty program, and nonrefundable admission fee.

　Accounting treatment of revenue recognition is closely related to the business management processes, such as products and service delivery process to customers, resource management and risk management. In this sense, it is intended to lead to the management's stance that apply for management reforms the IFRS financial information for representing the business conditions of companies enhance the effect of the application of IFRS.