The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation
The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation

Author(s): Mariusz Karwowski
Subject(s): Business Economy / Management, Evaluation research, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: IFRS 15; revenue; business model innovation; financial statements;
Summary/Abstract: The proper recognition of revenue is an important element in the preparation of the statement of profit or loss and other comprehensive income and, as such, it is an extremely difficult and complex issue. The challenge is greater in the context of business model innovation (BMI), which now constitutes a key source of growth and value creation. The objective of the research underlying this article is to determine the role of the new IFRS 15 “Revenue from Contracts with Customers” in evaluating the effects of BMI. A review of pertinent literature was conducted as well as an empirical study based on financial statements for the year ending in 2018 of companies from sectors in which BMI very often occurs: biotechnology, games, IT, and the pharmaceutical industry. Based on the research into relevant literature and the empirical study, it was found that IFRS 15 enables companies to match revenue more closely to the work performed to earn it and to calculate the value transferred to customers. Due to the complexity of these rules, when evaluating the effects of BMI, it is important to provide information supplementing the presentation of revenue in the statement of profit or loss and other comprehensive income. In the field of accounting research, this article may be treated as an attempt to look at revenue, the key element of financial statements, from the perspective of BMI.

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