IFRS 15 and Artificial Intelligence: Transforming Decision-Making in the Software Industry

Abstract

This study investigates how the implementation of IFRS 15 affects revenue recognition practices within the software industry, with a particular emphasis on the role of Artificial Intelligence (AI) in enhancing financial reporting and supporting decision-making. The research integrates a critical review of recent academic literature with an in-depth case study analysis. The theoretical section outlines key developments and emerging concerns related to the adoption of IFRS 15, the evolving role of AI in accounting and audit functions, and the broader implications of digital transformation for financial practices. The empirical part of the study examines a multifaceted software contract that includes a licensing agreement, customization services, ongoing maintenance, and variable consideration tied to user activity. The five-step IFRS 15 model is applied rigorously to address crucial aspects such as the identification of separate performance obligations, allocation of transaction price, revenue recognition timing, and the treatment of usage-based royalties. Findings emphasize the critical role of professional judgment in navigating complex contractual terms and demonstrate the potential of AI to streamline contract interpretation, automate allocation procedures, and improve the precision of revenue reporting. By linking IFRS 15 implementation with practical AI applications, this research offers actionable insights for accounting professionals operating in an increasingly digital and rapidly evolving economic context. UDC: [657:006.32]:004.89; JEL: M41, M48, O33