APPLICABILITY OF IFRS 15 PRINCIPLES FOR THE BANKING INDUSTRY:AN ANALYSIS WITH REFERENCE TO THE CREDIT INSTITUTIONS IN ROMANIA

Abstract

IFRS 15 is applicable for entities reporting in accordance with IFRS for periods beginning on or after 1 January 2018, with earlier application permitted. The Standard is the result of a joint project of IASB and FASB to develop a converged set of accounting principles for revenue recognition. It is relevant for all industries, with the most clearly observable impact for those commonly engaging in bundled contracts and long-term projects.

The purpose of this paper is to identify the areas where the new revenue guidance could potentially affect the banking industry and to analyze the impact of IFRS 15 adoption for a selected sample of credit institutions operating in the Romanian banking market. The results of the research performed indicate that the new Standard adoption had no significant impact on the annual results; however, many of the banks overlooked the applicability of IFRS 15 for the banking industry and did not analyze or disclose the impact in their annual financial statements for the year of IFRS 15 adoption.