The International Accounting Standards Board and the Financial Accounting Standards Board have replaced IAS 11 Construction Contracts and IAS 18 Revenue with IFRS 15.

Requirement:

With reference to relevant academic literature, discuss:

(a) whether the establishment of revenue recognition criteria is important.

(b) the theoretical problems and practical consequences of revenue recognition criteria.

(c) the conceptually different revenue recognition models that might be adopted to over- come these issues.

(d) the current developments with respect to the revenue recognition debate.