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http://dx.doi.org/10.14400/JDC.2019.17.11.163

The Effect of New Revenue Recognition Standard on Telecom Firms' Financial Reporting : Focusing on Regulatory Accounting  

Chon, Mi-Lim (Division of Business Management, Cheongju University)
Jung, Jin-Hyang (Department of Tax and Accounting Information, Yeoju Institute of Technology)
Lee, Tae-Hee (The School of Finance and Accounting, Kookmin University)
Publication Information
Journal of Digital Convergence / v.17, no.11, 2019 , pp. 163-170 More about this Journal
Abstract
A new revenue recognition standard was adopted in 2018. The purpose of this paper is to analyse how K-IFRS 1115 'Revenue from Contracts with Customers' affects the revenue recognition of the telecommunication firms and to suggest a regulatory policy for the telecommunications industry. It shows identifying performance obligations for bundles, determining the transaction price and allocating the transaction price to the performance obligation and how to account for it using case study. The most important change in the telecommunication companies's revenue is to allocate the transaction price to two performance obligations: telecom services and mobile handset sales. As a result, sales revenue are expected to drop en masse. This study provides important implications for the regulatory accounting policy of the telecommunications industry.
Keywords
K-IFRS 1115; Revenue Recognition Standard; Telecommunication industry; Regulatory Accounting; Regulating Policy;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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