Effects And Debates Of Applying IFRS 15 In Telecommunication Industry

Revenue plays a vital role in companies,it's an indicator that companies use to measure operating scale,profitability,growth ability and to assess performance,and it's also a key data for users of financial statements to assess the financial situation and operating performance of a company.As a major issue in the field of accounting,revenue recognition has been widely concerned by the public.There are various problems in current revenue standards,IFRS and US GAAP stipulate different revenue recognition requirements,resulting in a lack of certain comparability in revenue recognition among different industries,companies and the capital market.In order to clarify and unify the recognition standards for revenue,in May 2014,IASB and FASB issued "IFRS 15-Revenue from Contracts with Customers",using "Asset-Liability View" as the basic idea of revenue recognition and putting forward recognition standards for revenue which is based on contracts.This paper summarized the revising process of IFRS 15,the feedback from the public and the consideration on postponing the effective date of the criteria,and discussed the strengths and weaknesses of the new standards by comparing the differences between IFRS 15 and current revenue standards,which could provide reference for the convergence of Chinese Accounting Standards and IFRS.IFRS 15 will have significant effects on telecommunication industry and bring a variety of challenges.Starting from "Bundling Sale" business,this paper analyzed the differences of revenue recognition before and after the change of the standard and some possible problems,and pointed out that IFRS 15 could unify the standard of revenue recognition and improve comparability of financial information among different industries and companies along with some problems.At the same time,this paper researched the accounting treatments of other bundling business,credit risk and contract cost and discussed the content of information disclosure under IFRS 15,and also analyzed the effects on change of financial information,information system and internal control system that would be brought by the new standard.What's more,some measures and methods were put forward in this paper.