THE EFFECT OF APPLYING IFRS 15 ON THE INCOME STATEMENT: AN APPLY STUDY ON AL-KHAYATE AL- HADYTHA FIRM

Abstract

This research paper aims to explore the impact of IFRS 15 on the income statement, and describe the accounting process according to GAAP. To achieve research aims, the financial statements (2019 – 2022) of Al-Khayata Al-Hadytha as a joint firm in Iraqi securities exchange have been used as an apply study, and apply IFRS 15 on its statements, as well as the paper discusses the key principles of IFRS 15 and examines its effects on financial reporting, disclosure requirements, and the potential challenges faced by organizations during the implementation process. The research finds out that the recognition of revenues according to IFRS 15 has positively affected on the accounting process of firms, and leads to enhance of financial reporting quality by using the principles of IFRS.