UČINCI IMPLEMENTACIJE MSFI-JA 15 PRIHODI NA TEMELJU UGOVORA S KUPCIMA NA TRANSPARENTNOST FINANCIJSKOG IZVJEŠTAVANJA PODUZEĆA U REPUBLICI HRVATSKOJ
IMPLEMENTATION EFFECTS OF IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS ON FINANCIAL REPORTING TRANSPARENCY OF COMPANIES IN THE REPUBLIC OF CROATIA

Summary/Abstract: Revenues as an inflow of economic benefits in the form of assets increase or liabilities decrease are in the focus of managerial activities of every profit-oriented company. Meeting the business objectives of most companies is evaluated directly by the revenues level or indirectly by using revenue-based financial indicators like return on assets, profit margin, earnings before interests, operating earnings. From the aspect of external stakeholders, the importance of revenues is evident in independent auditor's reports, where revenue recognition is emphasized as a key audit matter in 27% of listed companies in the Republic of Croatia in 2019. In the context of considering revenues as a necessary basis in the business decision-making process, the issue of their recognition in accounting is crucial. With the objective to provide a more robust framework for revenue recognition, ease comparisons in industry, with capital markets, economy, and to offer relevant information to financial statements users in notes to financial statements, the International Accounting Standards Board issued new accounting standard in 2014 which establish the principles that an companies shall apply for revenue recognition from contracts with customers, as well as disclosure requirements in notes to financial statements. The aim is to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. After two years of application of IFRS 15 Revenue from Contracts with Customers the question is what are the effects of the Standard on the disclosure of qualitative and quantitative information in the notes to the financial statements and have more transparent and robust revenue recognition rules resulted in changes in business performance? This paper aims to investigate and evaluate the effects of the application of IFRS 15 Revenue from Contracts with Customers on qualitative improvements in the informative value of revenue disclosures in the notes to financial statements in the Republic of Croatia. In addition, this paper aims to evaluate the quantitative effects of the application of the Standard on the level of presented revenues for the same sample of companies. The sample of enterprises includes about forty enterprises of those industries for which the effect of the application of the new Standard was assessed as the most significant (e.g. telecommunications, construction, shipbuilding). The obtained data were analysed by content analysis method and other applicable methods of inferential statistics.

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