IFRS 15 Take-or-Pay: Revenue, Breakage and Disclosures in the Example of JSC Uzbekneftgaz

This paper analyzes the effects of IFRS 15 on revenue timing for long-term take-or-pay type supply contracts in the oil and gas sector. It shows that the major effect occurs in the velocity of revenue reallocation with future supply obligations and 'breakage' being taken into consideration, extended disclosure material, and more stringent data quality. The approach comprises interpretative analysis of IFRS 15, content analysis of industry-issued guidance (KPMG, PwC), and a case study on IFRS 15 adoption at Uzbekneftegaz JSC. A set of possible accounting systems has been established, and control mechanisms (take-or-pay register, payback, and remote criteria, digital re-conciliations) have been suggested.