The Impact of Transition to the Application of IFRS 15 Recognition of Revenue from Contracts with Customers A Case Study Jordan Telecommunication,s Company Orange
Author(s)
Dr. Khaled Jamal Jaara , Baraah Shaheen Al Khraisat ,
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Abstract
The study aims to examine the effect of transition to the application of IFRS 15: recognition of revenues from contracts with customers in Jordanian telecommunications’ companies, as a case study it was conducted in Jordan Telecommunications Company (Orange) for the period between 2010-2017, The researchers re-calculated the revenue of contracts with customers retroactively, and separate the goods’ revenues from services’ revenues, also calculate the assets from contracts at the end of each interim period for the quarterly progress reports for all periods of study. A number of statistical methods were used; the most important one is descriptive statistics, the natural distribution of data and testing the study hypotheses using the multiple regression equations to identify the effect of independent variables on dependent variables. The most important result of the study showed that there is a statistically significant impact at the level of (α ≤ 0.05) for the application of IFRS 15 as measured by the services' revenue , goods' revenue, and contract assets on total revenues and owner equity, The study recommended urging the telecommunications companies working in Jordan especially Orange to apply IFRS 15 for its impact to achieve transparency in disclosure, and to increase the reliability of accounting measurement of financial reporting.
Keywords
IFRS 15: Revenue from Contracts with Customers, Contract Assets, Services' Revenue, goods' Revenue, Orange, Telecommunications Companies.
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