Development of an integrated model for the application of International Financial Reporting Standard (IFRS) 15 – revenue from contracts with customers. Summary of the PhD thesis in Economics

Abstract

Actuality and importance of the research theme. The implementation of International Financial Reporting Standards (IAS/IFRS) in emerging economy countries is an extremely relevant and essential topic, widely debated in the specialized literature. As emerging economies have become more integrated into the global economy and gained a significant share of the international financial market, the process of implementing IAS/IFRS has gained increasing importance. International Financial Reporting Standards are a global set of accounting rules and standards intended to provide a uniform basis for financial reporting for companies around the world. Although these standards have been widely adopted by developed countries, their implementation in emerging economies has often been complex and challenging. In the Republic of Moldova and Romania, the adoption of IFRS evolved differently, reflecting the specifics of each country. In Romania, the process of convergence towards IFRS started in the 2000s, and today most of the listed companies apply these standards in their financial reporting. The implementation of IFRS in Romania increased the transparency and comparability of financial information, thus strengthening the attractiveness of the market for investors and the credibility of companies' financial reporting. In contrast, in the Republic of Moldova, the adoption of IFRS progressed more slowly compared to other Eastern European countries. However, in recent years efforts to align with these standards have increased, especially for multinationals and listed companies. However, there is still a need for further support and capacity building to ensure effective and correct implementation of IFRS. The implementation of IFRS not only stimulates economic development, but also promotes transparency and financial reporting standards in emerging economies. The implementation of IFRS 15 – Revenue from contracts with customers represents an essential step in the financial reporting process, redefining the way companies recognize and present revenue from contracts with customers. This standard is crucial because revenue is an essential component of financial reporting and significantly influences the perception of an entity's performance and financial condition. However, the implementation of IFRS 15 brings specific challenges, which may require considerable resources to ensure adequate understanding and correct application. Companies must adapt to the requirements and changes imposed by IFRS 15, which may involve adjustments to existing accounting practices and investment in staff training. The benefits of IFRS 15 adoption, particularly for emerging economies, outweigh these challenges. The implementation of the standard contributes to greater transparency and comparability in financial reporting, attracting foreign investment, improving access to finance and increasing the confidence of investors and other interested parties in companies' financial information. However, emerging economies face specific challenges, such as the lack of resources and expertise to implement and comply with standards, differences in existing accounting infrastructure and practices, and the need to adapt to the local economic and legal environment.