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Effect of the Application of IFRS 15: Evidence from Bulgaria

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  • Ani Stoykova

Abstract

IFRS 15 Revenue from Contracts with Customers is a completely new standard for recognition and evaluation of enterprises’ revenue regardless of the industry and type of revenue. The new standard completely replaces current standards related to recognition revenue. The aim of this study is to determine whether the adoption of IFRS 15 has affected Bulgarian companies’ revenue and stock prices or not. The period under examination is from 2016 to 2019. The analyzed companies are 16 separate corporate entities from various sectors in Bulgaria. The unit root test, descriptive statistics and paired sample t-test are applied. The results show that IFRS 15 has an influence on the stock prices of the Bulgarian listed companies of the following sectors: manufacturing, wholesale and retail trade, accommodation and food service activities, transportation and storage, real estate activities, construction and the value of stock prices of these companies decrease after standard adoption. IFRS 15 does not have a significant effect on the revenue of the analyzed Bulgarian companies.

Suggested Citation

  • Ani Stoykova, 2021. "Effect of the Application of IFRS 15: Evidence from Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 174-188.
    • Handle: RePEc:bas:econst:y:2021:i:3:p:174-188
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    References listed on IDEAS

    as
    1. Pepa Kraft & Wayne R. Landsman & Zilu Shan, 2021. "Effect of Mandatory IFRS Adoption on Accounting-Based Prediction Models for CDS Spreads," European Accounting Review, Taylor & Francis Journals, vol. 30(2), pages 223-250, March.
    2. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    3. Ronald J Huefner, 2016. "The impact of new financial reporting standards on revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(1), pages 78-81, February.
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    More about this item

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other

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