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International Finance and Accounting

Abstract

The main reasons for the application to international financial reporting standards are to increase the volume of foreign investment in the domestic market, to provide investors with the necessary information environment, and to expand access to international markets. The Resolution №4611 of the President of the Republic of Uzbekistan was adopted on joint-stock companies, commercial banks, insurance companies, and large taxpayers that operating in our country to organize their accounting system in accordance with IFRS requirements from 1 January 2021 and to prepare their financial reporting based on IFRS from ending of 2021. Based on this resolution, a study was carried out to determine the rights and obligations under contracts with customers, merger and amendment of contracts based on the criteria of Phase 1 of the 5-step revenue recognition model in IFRS 15 when recognizing operating income in construction companies. The results of the study show that IFRS 15 provides an appropriate basis for measuring rights and obligations under contracts in recognizing revenue. The application of these criteria ensures that the terms of the contract are constantly monitored. Requirements for the combining of contracts on the basis of IFRS 15 in construction companies operating in our country will lead to significant changes in practice in the construction industry.

References

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