Analysis Revenue Recognition by Using Self-Developed Disclosure Index Based on MFRS 15 Requirements Among Malaysian Public Listed Companies

The purpose of the study is to analysis revenue recognition using a self-developed disclosure index based on MFRS 15 requirements among Malaysian public listed companies. The types of companies from Bursa Malaysia were chosen for this study which were telecommunications and construction industries. The sample consists of 30 public listed companies from Bursa Malaysia that have adopted MFRS 15 in Revenue Recognition based on their annual reports for the year 2020. Content analysis and observation were utilised to conduct this study since they are both effective strategies for gathering data. Among the disclosure in MFRS 15 of Revenue Recognition, the revenue recognition positively significant to the Malaysian public listed companies. The study reveals 46% of the companies have disclosed the main requirement of MFRS 15 which is contract with customer disclosure based on the annual report that has been reviewed. Among these companies, some of them has been disclosed the significant judgements where the result shown as 20%. The items that included in significant judgements are description of significant judgements, the methods used to recognize revenue and an explanation as to why the methods used provide a faithful depiction of the transaction. Asset recognized from the costs to obtain or fulfil a contract with a customer will be another disclosure requirement in MFRS 15. The result for this disclosure is 21% higher compared to the other required disclosures, of which only 13% of the companies have been disclosed in their financial statements.