IFRS 15 - Full eller modifierad retroaktiv tillämpning? En studie om standardens effekter och faktorer bakom företags val av övergångsmetod

Sammanfattning: Abstract Title: IFRS 15 - Full or Modified Retrospective Application? A study of the standard’s effects and the factors behind companies’ choice of transition method. Seminar date: June 2nd, 2021 Course: FEKH69, Degree Project Undergraduate level, Business Administration, 15 University Credits Points (ECTS) Authors: Julia Baeza, Vendela Barth and Felicia Sonesson Advisor: Kristina Artsberg Key words: IFRS 15, revenue recognition, retrospective transition method, accounting standard, effects. Research question: Which effects does the choice of full or modified retroactive application have on the accounting of companies and if effects appear, can they affect the choice of transition method? Purpose: The purpose of the essay is to investigate if effects occur and, in that case, if they have influenced companies' choice of full- or modified retroactive transition method. The knowledge generated by this study can be useful for obtaining a deeper understanding of companies' accounting choices and the motives behind those choices. Methodology: The purpose has been investigated through a qualitative and quantitative approach, with several case studies as research design. Inquiry of annual reports have been conducted together with year-end reports, press releases and semi-structured interviews. Theoretical perspectives: The theoretical framework consists of a narrative literature review, Napier & Stadler’s model, PAT, legitimacy theory and institutional theory. Empirical foundation: The empirical material consists of 42 annual reports, four year-end reports, three press releases and four respondent interviews from 21 companies in the construction, telecom/IT and retail industries. Conclusions: IFRS 15 has several effects on companies in the construction and telecom/IT industries, while retail was not affected. It can be concluded that affected companies that applied the full method report effects on revenue, profit and retained earnings to a greater extent than application with the modified method. Other identified effects are changes in disclosures, implementation costs and minor behavioral changes. The study indicates that found effects have not been definitive for the choice of method, but instead it can largely be explained with legitimacy and isomorphism and in some cases the use of bonus systems.