When transferring individual UGB financial statements to IFRS consolidated financial statements, various adjustments must be made because the UGB regulations do not correspond to the regulations of the IFRS 15 “Revenue form Contracts with Customers”. These adjustments are challenging for the enterprises due to the fact that they also lead to various uncertainties in the application of the rules, which can result in accounting errors. This thesis is intended to give an overview of the theoretical principles of revenue recognition in accordance with IFRS 15 and UGB. As a consequence, the differences between IFRS 15 and UGB should be outlined. Moreover, this thesis aims to explain possible application uncertainties and show the adjustments that are necessary when preparing the consolidated financial statement. The literature research method was used to develop the topic and the differences between the two standards are worked out with the help of case studies. The five-step-model of IFRS 15 for revenue recognition is explained in this bachelor's thesis. Furthermore, the theoretical principles of revenue recognition in accordance with the UGB as for example the realisation principle are described. With the help of case studies, the compatibility of the IFRS 15 with the UGB is examined and the accounting differences are clarified. As a result, the adjustments as part of the transition from the UGB financial statement to the consolidated IFRS financial statement, which are necessary because of the differences between UGB and IFRS, are shown. In conclusion, this bachelor’s thesis shows that there are considerable differences in the accounting of revenues, particularly in the plant engineering sector, owing to customer-specific long-term orders. The regulations of IFRS allow the revenues to be partially recognised based on the stage of completion. By contrast, it is not permitted in the UGB to recognise the revenues partially unless it is a continuing obligation. These different methods lead to considerable differences in the amount of recognised revenues. Moreover, the different definition of the word “sales revenue” leads to different categorisations of the revenues. According to the UGB, sales do not have to correspond to ordinary business activities. Contrary to this, in the IFRS 15 it is only allowed to recognise sales revenues if they are realised in the normal course of business. For the preparation of the consolidated financial statement, checking if the recognised revenues in the UGB also correspond to the definition of revenues in IFRS or if a reclassification of revenue is necessary, is indispensable. In addition, the reporting company has to provide information on the recoverability of the revenue due to the fact that no uncertain revenue is allowed to be recognised in IFRS.
Gegenüberstellung der Umsatzrealisation im UGB und im IFRS
Wenighofer, P. (Author). 2024
Student thesis: Bachelor's Thesis