Current Income Recognition Principle Analysis of IFRS 15, ASC 606 and CAS 14
- https://doi.org/10.2991/aebmr.k.210319.008How to use a DOI?
- income recognition, IFRS 15, ACS 696, CAS 14, five step model
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.
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Cite this article
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 - https://doi.org/10.2991/aebmr.k.210319.008 ID - Zhou2021 ER -