The Impact of Applying Revenue from Contracts with Customer Standard IFRS 15 on Creditworthiness and Cost of Finance by Borrowing "A Field Study"

Document Type : Original Article

Authors

1 Accounting Department, Faculty of Commerce, Benha University, Qaluybia, Egypt

2 Accounting Department, Faculty of Commerce, Benha University, Egypt

Abstract

This study aimed to show the impact of applying Revenue From Contracts With Customers standard IFRS15 on Creditworthiness and the cost of financing by borrowing as aprimary objective and this study reached to the following results: (1) There are no significant differences between the opinions of the study sample about the importance of applying IFRS15 for financial statement preparers and credit managers, and (2) There is a statistically significant effect of applying IFRS15 on creditworthiness, and (3) There is a statistically significant effect of applying IFRS15 on the cost of financing by borrowing, and the study presented some recommendations which are: (1) That accountants and financial managers have a sufficient degree of legal culture to determine the net value or position of the contract, and (2) The necessity for banks granting credit to conduct a credit examination when contracting with borrowers in addition to monitoring the ability of borrowing customers to pay of goods or services, (3) The bank granting credit must make sufficient effort in analyzing the borrowing contracts and evaluating the creditworthiness of the borrowing clients, and (4) The researcher also recommends the necessity of achieving a balance between the property funds and the borrowing funds so that the company is not exposed to the risks of bankruptcy and default.

Keywords

Benha Journal of Humanities Sciences
Volume 3, Issue 2
March and April 2024
Pages 113-135

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