Assessing the CFO'S Perspective on IFRS 15 Implementation

Income recognition is a very complex field that arises from the user's interest in this indicator, and it can even be the basis for errors and scams in its understanding. Even if the principles and standards are stable, the difficulty of income recognition is well known to practitioners, as economic conditions may require new experience, adaptive knowledge, and flexibility. Therefore, as the transition to the new IFRS 15 standard takes place, it is more important than ever to consider how the new IFRS 15 standard will be applied. In light of this, the study aims to suggests evaluating how to determine whether or not companies audited by the Big 4 accounting firms worldwide are aware of the implementation process of IFRS 15 and how it will impact the likelihood of the businesses' performance and profitability. Simultaneously, we wish to pinpoint the primary issues and roadblocks that could come up throughout this procedure. For this purpose, we conduct a quantitative study based on a structured questionnaire consisting of thirty questions that was distributed to the CFOs of the audited companies between 2021-2022. The results of the questionnaire on respondents' perceptions of the application of IFRS 15 are mixed. In addition to the advantages, the application of the new standard is perceived by some companies, especially those in the telecommunications sector, as a disadvantage in terms of the usefulness of additional information, the difficulty of estimating it, the level of subjectivity involved (which would affect the comparability of information) or the complexity and cost of implementation.