In the business world, there is a growing concern over the quality of accounting standards in relation to the information provided by firms being transparent and relevant to users of the information (part in yellow needs to be backed by recent publications of for instance ESMA. Concern is not the right word choice. There is a lot of attention to the quality of accounting standards. And there is attention for room for improvement. Hence, International Accounting Standard Board (IASB) has issued several publications under its Financial Accounting Standards Board (FASB) that relate to the standards of financial reporting(please add publications IASB). The intent of the publications is to ensure that the information provided is transparent and represents the actual and true economic valuation, performance, and financial position of a firm (Van Greuning, 2009). Such intents has given rise to the most recent IFRS 15 of May 2014 which focused on disclosure quality and transparency of revenue from contracts with a firms customers. Under this standard, two prior IFRS were superseded: IFRS 11 – construction contracts, and IFRS 8 – revenues. IFRS15 is mandatory for annual reports that start on 1 january 2018 or after that. Due to this, IFRS is deemed to be focused on the determination of how firms determine and recognize revenues by identifying five steps that recognize the real value of revenues for firms (Altaji & Alokdeh, 2019). In this paper, we shall explore the role that compliance to IFRS 15 plays in the size of the firm, its governance structure, and other measurable.please add some examples/references why IFRS15 is important referring to social interest for example/some scandals maybe
Also try to introduce the research population. Why is the focus on European firms and specifically the sectors construction, technology, telecommunications. This due to these sectors have complex contracts with customers and there is a mandatory application European firms regarding to IFRS15. The introduction is more about the quality of IFRS 15 than of the application of it. Important is that we look at the quality of IFRS 15 , not at improvement of the transition from it predecessor to IFRS 15. Also a part of why it is important to implement IFRS 15; for example what is the social/scientific contribution of it.
This study is founded on the basis of agency and stakeholders theories. In the context of agency theory, the research shall define company employees and the management as the agents to their principals – the stakeholders to the company. The relationship shall be explored in an attempt to define the influence the principal may have in the levels of transparency practiced by their agents. On the other hand, stakeholders – employees, suppliers, and creditors etc. – theory shall be explored in the context that quality of revenue disclosure may be influenced by their actions and expectations. As such this study shall explore the influence stakeholder-principal relationship has on the quality of revenue disclosure.
Type of service: Academic Paper Writing
Type of assignment: Research Paper
Number of Sources: 14
Academic level: Senior (college 4th year)
Paper Format: APA
Line spacing: Double
Language style: US English