Developing Revenue Recognition Practices in Construction Companies in Accordance with International Financial Reporting Standards (IFRS)

This article analyzes the theoretical and practical aspects of forming a revenue recognition system in construction companies based on International Financial Reporting Standards. The specific characteristics of construction activities, particularly long-term contracts, a high proportion of work in progress, and the complexity of cost systems, significantly complicate the process of determining revenue. The study substantiates the mechanism of revenue recognition based on IFRS 15 “Revenue from Contracts with Customers”, highlights the differences with the national accounting system, identifies practical challenges, and proposes ways to address them. Furthermore, the effectiveness of stage-by-stage revenue recognition methods and their impact on the quality of financial reporting are examined.