The Content Of Ifrs 15

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The Content of IFRS 15 Summary of the content Objective The financial statement users may have the desire to participate in investment, but they have different level of education background, which means that not all financial statement users have enough accounting or financial knowledge. In the financial statement, revenue is an important item that can help users to make a judgment or decision. However, sometimes it’s difficult for users to find the useful revenue information and use the information to make a correctly judgment, because there are some critical differences between the IASB and FASB, and the differences are not easily found by doing research. To help investors solve this problem, IFRS 15 intends to establish the new principles for disclosure of financial statement information for entities. These new principles require the entities to report useful information to financial statements users about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer 1. The most important part of IFRS 15 principles is that the entities should recognize revenue to reflect the transfer of goods or services, improve the quality of financial statement and provide more useful information to users. Scope IFRS 15 standards mainly apply when and how the firm should recognize revenue derived from contracts with customers, unless the contracts with customers are in the scope of other standards. Such kind of contracts include: Insurance
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