The Impact Of IFRS On Revenue Recognition Issue

Project and Seminar Material for Accountancy / Accounting

The Impact Of International Financial Reporting Standards (IFRS) On Revenue Recognition Issue


Abstract


This study was intended to evaluate the impact of IFRS on revenue recognition issue. This study was guided by the following objectives; to examine the impact of IFRS on revenue recognition in Nigeria. To provide a more robust framework for addressing revenue recognition issues. To improve comparability of revenue recognition practices across industries, entities within those industries, jurisdictions and capital markets. To reduce the complexity of applying revenue recognition requirements by reducing the volume of the relevant standards and interpretations. To provide more useful information to users through new disclosure requirements.

The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi-square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 54 employees of UBA Abuja branch. The study majorly focuses on the impact of IFRS on revenue recognition issue.

The study findings revealed that IFRS significantly impacts on revenue recognition in Nigeria.


Table of Contents


  • Title Page
  • Approval Page
  • Declaration
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Contents

Chapter One

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of General Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Significance of the Study
  • 1.6 Scope of the Study
  • 1.7 Definition of Terms

Chapter Two

Review of Related Literature

  • 2.1 Introduction
  • 2.2 Overview of IFRS
  • 2.3 Definition of revenue recognition
  • 2.3.1 Timing of revenue recognition
  • 2.3.2 The importance of a good revenue recognition system
  • 2.6 Review of literature

Chapter Three

Research Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Area of the Study
  • 3.4 Population of Study
  • 3.5 Sample size and Sampling Techniques
  • 3.6 Instrument for Data Collection
  • 3.7 Validity of the Instrument
  • 3.8 Reliability of the Instrument
  • 3.9 Method of Data Collection
  • 3.10 Method of Data Analysis

Chapter Four

Data Presentation and Analysis

  • 4.0 Introduction
  • 4.1 Data Presentation and Analysis
  • 4.2 Characteristics of the Respondents
  • 4.3 Data Analysis
  • 4.4 Testing Hypothesis
  • 4.5 Summary of Findings
  • 4.6 Discussion of Findings

Chapter Five

Summary, Conclusion and Recommendation

  • 5.1 Findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • References
  • Appendix

Chapter One


Introduction

1.1 Background of the Study

International Financial Reporting Standards (IFRS) can be said to be a set of international accounting standards(IAS) that states how transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board, and they clearly define how accountants must maintain and report their accounts. IFRS were established in order to have a common accounting language, so business and accounts can be understood from company to company and country to country.

IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee.
IFRS (International Financial Reporting Standards) are specifically designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. IFRS creates a single source of revenue requirements for all entities in all industries. The new revenue standard is a significant change from current IFRS. The new standard applies to revenue from contracts with customers and replaces all of the revenue standards and interpretations in IFRS. IFRS is principles-based, consistent with current revenue requirements, but provides more application guidance. The lack of bright lines will result in the need for increased judgment. The new standard will have little effect on some entities, but will require significant changes for others, especially those entities for which current IFRS provides little application guidance.

IFRS introduces a new approach to determine whether revenue should be recognized overtime or at a point in time. Three scenarios are specified in which revenue will be recognized over time broadly, they are when: the customer receives and consumes the benefits of the seller’s performance as the seller performs, 2, the seller is creating a ‘work in progress’ asset which could not be directed to a different customer and in respect of which the customer has an obligation to pay for the entities work to date. If revenue is to be recognized over time, a method should be used which best reflects the pattern of transfer of goods or services to the customer. If a transaction does not fit into any of the three scenarios described above, revenue will instead be recognized at a point in time, when control passes to the customer.


1.2. Objectives of the Study

The following are the objectives of the study:

  1. To examine the impact of IFRS on revenue recognition in Nigeria.
  2. To provide a more robust framework for addressing revenue recognition issues.
  3. To improve comparability of revenue recognition practices across industries, entities within those industries, jurisdictions and capital markets.
  4. To reduce the complexity of applying revenue recognition requirements by reducing the volume of the relevant standards and interpretations.
  5. To provide more useful information to users through new disclosure requirements.

1.3. Statement of the Problem

The lack of adequate revenue recognition in big and corporate institutions has necessitated this. Most Nigerian companies often overlook the impact of the international financial reporting standard on revenue recognition in revenue allocation and income streams.


1.4. Significance of the Study

On revenue and revenue recognition, this research work will enable people to apply the detailed rules in particular situations, such as accounting for construction contracts and government grants. Help understand the basic foundation of the principles of how to deal with income.

  1. Consider how you need to recognize revenue and other forms ofincome in the financial statements.
  2. Understand the basics of IAS to help the transition when IFRS replaces it.
  3. Account for and disclose provisions of grants by government and other forms of government assistance.

1.5. Scope / Limitation

This study is on the impact of international reporting financial reporting standard on the revenue recognition issue with UBA in Mogadishu district Abuja serving as the case study.


1.6. Research Questions

  1. What is the impact of IFRS on revenue recognition issue in financial institutions?
  2. Is revenue recognition important to investors?
  3. What is the effect of revenue recognition on revenue recognition?

1.7. Hypothesis

  • H0: IFRS significantly impacts on revenue recognition in Nigeria.
  • H1: IFRS significantly impacts on revenue recognition in Nigeria.

1.8. Definition of Terms

IFRS:

International financial reporting standards

Revenue:

The money that a government receives from taxes or that an organization etc, receives from its business.

Customer:

A person or an organization that buys something from a shop, store or business.


Chapter Five


Findings, Conclusion and Recommendation

The objectives of this study were to

  1. To remove inconsistencies and weaknesses in the current revenue recognition literature.
  2. To provide a more robust framework for addressing revenue recognition issues.
  3. To improve comparability of revenue recognition practices across industries, entities within those industries, jurisdictions and capital markets.
  4. To reduce the complexity of applying revenue recognition requirements by reducing the volume of the relevant standards and interpretations.
  5. To provide more useful information to users through new disclosure requirements.

Findings from the study revealed the following

  1. IFRS improves revenue recognition.
  2. IFRS is important to the banking sector in Nigeria.
  3. IFRS significantly impacts on revenue recognition.
  4. Revenue issues can be solved through adequate implementation of IFRS.

The Impact Of IFRS On Revenue Recognition Issue


Project Material Download

3,000 Naira


The complete material will be sent to you in just 2 steps.

Quick & Simple…


Step One Purchase

Make payment of ₦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:

Access Bank PlcAccount No.: 0811003731
Name: Samphina Academy
Account Type: Current

Or Click Here to pay with Debit Card

FOR CLIENTS OUTSIDE NIGERIA:
Click Here to pay with Debit Card ($15)
GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas Osabutey 

  PAY WITH CRYPTOCURRENCY


Step Two Purchase

Send the following details through Text Message or WhatsApp Messenger | +234-8143831497

  • Payment Details 
  • Email Address 
  • The Impact Of IFRS On Revenue Recognition Issue

The complete material will be sent to your email address after receiving your payment information | T & C Apply


  Contact Our Help Desk


You may also like:

⚠️ Need a different topic? Perform a quick search



Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria


Disclaimer


This research material “The Impact Of IFRS On Revenue Recognition Issue” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.

samphina.com.ng is only providing this material “The Impact Of IFRS On Revenue Recognition Issue” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.