Revenue recognition under national GAAP and IFRS. Evidence from Azerbaijan

Ing. Ismayil Mehdiyev

Master's thesis

Abstract:

The aim of the study is to analyse the differences in revenue recognition under AZE GAAP and IFRS and their impacts on the financial state-ments of Azerbaijani companies. In the study the mixed research ap-proach is used utilized a mixed research approach, combining quantita-tive data gathered from published reports by companies with qualitative data obtained through interviews with accounting professionals in Azer-baijan. The published financial statement aimed to assess the adherence to accounting standards and the impact of these differences on financial statements. Statistical techniques such as regression analysis were used to analyse the results of the research and interviews, aiming to deter-mine the significance of differences in revenue recognition between na-tional GAAP and global IFRS. The study revealed that adopting global IFRS has improved transparency and reliability in financial reporting in Azerbaijan. Despite this, challenges remain in implementing global IFRS, particularly regarding provisions and accruals treatment. These findings have significant implications for improving the adoption and implementa-tion of global IFRS by accounting professionals and regulatory bodies in Azerbaijan, ultimately enhancing credibility and comparability of Azerbai-jani companies' financial statements globally.

Abstract:

The aim of the study is to analyse the differences in revenue recognition under AZE GAAP and IFRS and their impacts on the financial state-ments of Azerbaijani companies. In the study the mixed research ap-proach is used utilized a mixed research approach, combining quantita-tive data gathered from published reports by companies with qualitative data obtained through interviews with accounting professionals in Azer-baijan. The published financial statement aimed to assess the adherence to accounting standards and the impact of these differences on financial statements. Statistical techniques such as regression analysis were used to analyse the results of the research and interviews, aiming to deter-mine the significance of differences in revenue recognition between na-tional GAAP and global IFRS. The study revealed that adopting global IFRS has improved transparency and reliability in financial reporting in Azerbaijan. Despite this, challenges remain in implementing global IFRS, particularly regarding provisions and accruals treatment. These findings have significant implications for improving the adoption and implementa-tion of global IFRS by accounting professionals and regulatory bodies in Azerbaijan, ultimately enhancing credibility and comparability of Azerbai-jani companies' financial statements globally.

Keywords

AZE GAAP, IFRS, revenue, cost, financial reporting, harmonization

Language used: English

Date on which the thesis was submitted / produced: 13. 5. 2024

Thesis defence

• Date of defence: 18. 6. 2024
• Supervisor: Ing. Oleksandra Lemeshko
• Reader: Mgr. Ing. Filip Hampl, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance / Finance