| Summary: | 碩士 === 國立交通大學 === 高階主管管理碩士學程 === 99 === Financial Supervisory Commission, Taiwan had published a roadmap for Taiwan's adoption of the International Financial Reporting Standards (IFRSs) in May 2009. All listed companies and unlisted public companies will be required to prepare financial statements in accordance with IFRSs starting from 2013 and 2015, respectively. While all enterprises are implementing IFRSs, the IASB released the exposure draft of "Revenue from Contracts with Customer" (the ED) on June 24, 2010, the ED will remove inconsistencies and weaknesses in existing revenue recognition standards by providing clear principles for revenue recognition. We expect that it will have significant differences to the R.O.C. accounting standards. The study will base on researches of the ED to evaluate the significant impacts of Taiwan major industries, enterprises and financial statement users.
The study found that there are significant differences between the ED and R.O.C. accounting principles, such as the accounting treatment for sales with the right of return, product warranties, customer incentives, customer loyalty programs, and sales with customer credit risk, etc. In addition, the ED withdrawal the percentage of completion method, and a similar revenue recognition outcome may arise under the ED if control of the constructed asset is transferred to the customer continuously, so the new principle will raise a significant change for revenue recognition to building and construction industry. While enterprises implement the new standards, they must be positive, corporate social responsibility approach, and the all management must fully understand their business model and its economic substance, re-evaluate and integrate the information system, not only for financial statement preparations in accordance with IFRSs, also to enhance the management efficiency. And for financial statement users, they should have abilities to interpret and evaluate management’s attitude for making judgments and estimates though reading the financial statements.
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