Current Income Recognition Principle Analysis of IFRS 15, ASC 606 and CAS 14

DOI

10.2991/aebmr.k.210319.008How to use a DOI?

Keywords

income recognition, IFRS 15, ACS 696, CAS 14, five step model

Abstract

Income recognition principle under IFRS and GAAP has changed into convergence in the last few years. With a demand of converting to IFRS, Chinese accounting standards have also obtained development in income recognition. All income recognition principles under the three different accounting system contain core element of 5-step model for income recognition. On the other hand, they all maintain certain difference as the external environments vary from place to place. For IFRS, which is principle based, the new IFRS 15 prescribes more detailed methods to deal with construction contract, variable consideration and contract amendments. For GAAP part, income recognition steps with special requirements and difference with IFRS 15 is illustrated in detail. For Chinese accounting standards, with an unmatured market, they maintain a relatively flexible requirement with potential problems. This essay demonstrates major differences among the three principles towards income recognition, further exploring disadvantages of current principles.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Shuyu Zhou
PY  - 2021
DA  - 2021/03/22
TI  - Current Income Recognition Principle Analysis of IFRS 15, ASC 606 and CAS 14
BT  - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021)
PB  - Atlantis Press
SP  - 38
EP  - 44
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210319.008
DO  - 10.2991/aebmr.k.210319.008
ID  - Zhou2021
ER  -