Recognition of Revenue from Operating Activities in Construction Organizations in Accordance with IFRS 15

The adoption of International Financial Reporting Standards is to increase the volume of foreign investment in the domestic market and expand the opportunity to access international markets by providing investors with the necessary information environment. Therefore, joint-stock companies, commercial banks, insurance companies, and large taxpayers operating are being required to organize accounting based on IFRS from January 1, 2021, and from the ending of 2021 to prepare reports based on international financial reporting standards in Uzbekistan. For that reason, a study was conducted to determine the rights and obligations of customers under contracts, combining and modification of contracts based on the criteria of stage 1 of the 5-step revenue recognition model of IFRS 15 in recognition of revenue from operating activities in construction companies. The results of the study show that IFRS 15 provides an appropriate basis for measuring rights and obligations under contracts in the recognition of revenue. Applying these criteria ensures that contractors monitor the terms of the contract over time. Requirements for the consolidation of contracts based on IFRS 15 in construction companies operating in the Republic of Uzbekistan lead to significant changes in practice in the construction industry.

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