Revenue estimation methods and their impact on the development of accounting

Subject. This article discusses the particularities of the International Financial Reporting Standard (IFRS) 15 – Revenue from Contracts with Customers, in particular, the possibility of an accountant applying professional judgment when treating business events in the Revenue item. Objectives. The article aims to analyze the changes in reporting data prepared in accordance with the IFRS requirements before and after the adoption of IFRS 15, and simulate the reporting of the company, within the framework of which the transactions of sale of goods and their returns are recognized. Methods. For the study, we used the methods of logical and quantitative analyses, as well as modeling. Results. The article finds that the transition to the concept of professional judgment in the recognition and measurement of revenue does not help users unambiguously judge the changes in this indicator in previous periods. Using examples of return operations, the article shows the qualitative difference between the methods used earlier and now in terms of transparency and reliability of reporting data for an external user. Based on the results of the modeling, statements prepared in accordance with IFRS 15 were obtained, the data in it were analyzed for compliance with the accepted conceptual accounting principles. Conclusions. Due to the significant valuation component, the key financial statements raise conceptual issues that help assessing how new methods of revenue recognition and measurement can affect the assumption of temporal certainty of the facts of economic activity and the forward-looking nature of accounting data.