How does the Implementation of TFRS 15 Revenue from Contracts with Customers affect the change from the Application?
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Abstract
The objectives of this study aimed to examine the differences of the profit and profit quality’s changes between the previous year and the year after the implementation of TFRS 15, and to compare the effect of TFRS 15 implementation on profit and profit quality’s changes of listed companies on the Stock Exchange of Thailand. The data was collected from 319 companies which were considered a sample group of 1,595 companies, and the analysis of the financial statements of the company during 2018-2021 which 2018 was the year before the regulation was enforced, 2019 was the year that the regulation was enforced, and 2020-2021 were the years after the regulation was enforced. The data was analyzed using descriptive statistics and inferential statistics methods. The results showed that there was no difference of the average of change’s profit before interest, income tax and depreciation significantly between the year before and after TFRS 15 was applied, as for the average of change’s profit before interest and income tax, change in net profit and discretionary accruals were significantly different between the years before and after TFRS 15 implementation. The implementation of TFRS 15 significantly caused a positive impact toward the change of profit before interest, income tax, and depreciation, whereas the TFRS 15 implementation had no effect on the change of profit before interest, income tax, and net profit. In addition, TFRS 15 also significantly caused a negative impact toward the discretionary accruals.
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References
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