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The introduction of the International Financial Reporting Standards 15 (IFRS 15) is a significant change that has impacted the way companies recognize revenue. This paper investigates how companies have navigated this shift over a five years period since the adoption year. By analyzing the annual reports of 50 European companies listed in FTSE 100, this paper used a disclosure index to calculate a total compliance score to IFRS 15. The findings of this study highlight a significant yet moderate level of adherence to the disclosure requirements mandated by IFRS 15, with an overall compliance rate of 60%. This result reflects the ongoing challenges companies face in fully aligning their financial reporting with the detailed and sometimes complex requirements of IFRS 15. The findings also documented variations between industries and companies. This study is important for the standard-setting body to know the level of application of the standard by companies, as this can help to identify areas for improvement and adjustments to the standard. Moreover, the variability in compliance across sectors indicates that some industries might require more targeted support.

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Five Years of Implementing the Financial Reporting Standard that Changed the Revenue Recognition Approach

  • 会议论文

  • 发表日期：

    2025年

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  • Rasha Alghazzawi,
  • Loai Alhawamdeh,
  • Khader Al-Kilani,
  • Fares Mubarak

摘要

The introduction of the International Financial Reporting Standards 15 (IFRS 15) is a significant change that has impacted the way companies recognize revenue. This paper investigates how companies have navigated this shift over a five years period since the adoption year. By analyzing the annual reports of 50 European companies listed in FTSE 100, this paper used a disclosure index to calculate a total compliance score to IFRS 15. The findings of this study highlight a significant yet moderate level of adherence to the disclosure requirements mandated by IFRS 15, with an overall compliance rate of 60%. This result reflects the ongoing challenges companies face in fully aligning their financial reporting with the detailed and sometimes complex requirements of IFRS 15. The findings also documented variations between industries and companies. This study is important for the standard-setting body to know the level of application of the standard by companies, as this can help to identify areas for improvement and adjustments to the standard. Moreover, the variability in compliance across sectors indicates that some industries might require more targeted support.