One of the key items of the financial statements- revenue adjustmant

Manana Mchedlishvili


Revenue is an income arising in the course of entity’s ordinary activities. Revenue, together with income, is an indicator estimating the financial performance and financial position of an entity and is important in this regard for the users of financial statements. IFRS 15, as the standard regulating recognition, measurement and presentation of revenue, establishes the principles which ensure preparation of the information based on the economic content of contracts with customers, the terms of recognition and the credibility of the revenues. From the existing principles of income recognition, the standard has ignored inconsistencies and weaknesses and has provided recognition of the income with a more reasonable structure. The standard provides the five-step model framework of recognition of the revenue which specifies the main actions to be implemented by an entity for the purpose of simplification of the financial reporting preparation procedures and improvement of the economic content of the information. The regulations of this standard will contribute to delivery of useful information to its users.


Revenue; Contractual asset; Contractual obligation; Price of deal; receivable and creditors' debt ; Method


Sreseli N.(2019) Economics- Monthly International reviewed and refereed scientific journal no.10-12. pp. 94-111

Kvatashidze N. Gogrichiani Z.(2016) New model of revenues recognition - IFRS 15 revenue from contracts with customers pp.293-297.

Revenue from contracts with customer(2014) - com/us/en/cfodirect/assets/pdf/accounting-guides/pwc-revenue-recognition-global-guide-pdf1

In brief: FASB proposes further amendments to the new revenue standard -

www. IFRS 15. Revenue from Contracts with Customers. (2019). IFRS Foundation › ifrs-15-revenue-from-contracts-with-customers › insights › ifrs-15-revenue-from-contracts...

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