The impact of evolving business models on the transformation of revenue recognition standards

Jozefina Beke-Trivunac

doi:10.62907/eemr250402038b

Authors

Jozefina Beke-Trivunac ALFA BK Univerzitet, Beograd, Srbija Author https://orcid.org/0000-0002-7394-7006

DOI:

https://doi.org/10.62907/eemr250402038b

Keywords:

Accounting standards, IFRS, IPSAS, Financial reportin

Abstract

The primary issue in accounting for revenue is the timing of its recognition. The first international accounting standard on revenue recognition was issued in 1982. The fundamental principle for revenue recognition was the transfer of economic benefits from the seller to the buyer. The emergence of the “Internet bubble” in the early 2000s, increasingly complex contracts with customers, and the rise of new business models involving combinations of goods and services, as well as multi-element arrangements, highlighted the need for significant improvements in financial reporting on revenue, tailored to the requirements of the modern business environment. This paper describes the main changes in accounting for revenue that are appropriate to new business models.

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