FBK at the “IFRS: Practical Application” conference

Senior manager of International Financial Reporting and Assurance Department of FBK Ksenia Shirikova took part in the conference dedicated to the practical application of the international financial reporting standards “IFRS: Practical Application. Latest developments and outlook”.

She spoke on the issue of “A new way of accounting for and reporting revenue in IFRS statements” at the “Solutions for the Real Economy” section. She specifically dwelt on the practical aspects of the application of the newly introduced IFRS 15 “Revenue from Contracts with Customers”.

According to the FBK expert, the newly adopted standard, effective in Russian from 1 January 2018 on a mandatory basis, introduces significant changes into the regulations on the accounting for business contracts. These changes might be most challenging for entities which maintain sophisticated and complex contracts which provide for the supply of a variety of different items, including goods and services.

“The new standard requires singling out the subject matter of a contract and, if certain conditions apply, reporting them for accounting purposes separately, which makes accounting procedures more complicated and time-consuming. The aspects of the practical application are, therefore, becoming even more so important. There’s not much time left to embrace the change,” Ksenia noted.

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