IMPLEMENTATION OF TFRS 15 “REVENUE FROM CONTRACTS WITH CUSTOMERS: A CASE STUDY ON CONSTRUCTION CONTRACTS

Public Oversight Accounting and Auditing Standarts Authority (KGK) has issued a new Standard on revenue recognition – TFRS 15 “Revenue from Contracts with Customers”. Companies are required to apply TFRS 15 to their annual reporting periods beginning on or after 1 January 2018. TFRS 15 brings a different perspective to revenue concept than current practices regarding amount of revenue to be recognize and accounting treatment. The standard involves a five-step model and two new approaches as recognition of revenue at a point in time or over time. The aim of this study is to examine these two approaches by way of case study on construction contracts