Application Of IFRS 15 In Telecommunication Enterprises

Revenue,as a key measure of market performance,has always been widely concerned.With the economic environment becoming increasingly complex,the current income standards have been far from meeting the practical needs.As the current revenue standards exists many defects,IASB and FASB launched a joint project on revenue recognition,developed and issued a new revenue recognition standard called "Revenue from Contracts with Customers".A single income recognition model based on contract is proposed.Under the new standard,an entity shall recognize revenue when the customer obtains control of a promised good or service,which may lead to many changes in accounting processing,especially for enterprises with many frequent and diverse contracts,such as telecom operators.The application effects of the new standards and the problems should be attention to need to be considered.On the basis of reviewing the concept and confirming theory of revenue,and summing up the lack of current revenue standard,this paper introduces the core viewpoints of the new revenue recognition standard and compares the differences between the current and the new standards.In the aspect of practice,this paper chooses China Unicom,China Mobile and China Telecom three telecom operators as the telecom industry representatives,and explores the main defects of current revenue standard in application based on the company's current revenue recognition policy comparison.This paper also outlines the judgments involved in applying a five-step framework for revenue recognition to a telecommunications contract,and then analyzes the differences and problems caused by the conversion of the standard to the accounting practice of the telecommunication company.Finally,this paper combs the improvements of the new standard,summarizes the advantages and disadvantages of the new standard,and puts forward some suggestions on the improvement of the standard.Studies have shown that the new revenue recognition standard creatively put forward the concept of "contract","performance obligations" and "control",which helps to establish a unified analytical framework and address revenue recognition differences effectively.The new standard is also improved in terms of revenue recognition in multi-factor contracts,determination of transaction prices,revenue adjustment at contract changes,capitalization of contract costs,and so on.The new criteria complement the business guidelines that are not regulated by the current guidelines,but the reason for its abandonment of fair value standards is open to question,and a large number of judgments involved in the application will also affect the actual effect.At the same time,it will reduce the horizontal comparability by making an expedient transition policy to simplify the practical operation.In this regard,this paper proposes to increase the fairness assessment of transaction prices,to supplement specific business guidelines related to professional judgments,to establish a guideline transition group and other recommendations to make up for the above shortcomings.