Firm-Specific Determinants Affecting Compliance with IFRS 15 Revenue from Contracts with Customers Standard Disclosure Requirements: BIST100 Review

Abstract

Purpose – The study aims to determine whether there is a relationship between firm characteristics and the degree of compliance with IFRS 15 disclosure requirements.
Design/methodology/approach – This study first examines the 5-year financial statements of 54 companies listed in BIST 100, starting from 2018, when the standard was implemented. The study then assesses level of compliance with disclosure requirements to determine whether there is a relationship between firm characteristics and degree of compliance with the IFRS 15 disclosure requirements. To determine the level of adjustment, the study used panel data analysis.
Findings – The panel data analysis revealed a statistically significant relationship between compliance with IFRS 15 disclosure requirements and firm size, Return on Assets, Return on Equity, and audit firm size. However, there was no significant relationship between leverage ratio and audit firm rotation. Contrary to expectations, company age was significantly and negatively related with disclosure requirements.
Discussion – The content analysis revealed that level of compliance varied. The findings of this study have important implications regarding the accounting rules and principles of regulating organizations striving to improve the level of auditing and reporting standards in Turkey, as well as for all users of financial reports. In addition, the findings help to evaluate the scope of mandatory disclosures made by companies in Turkey.