ACCOUNTING SPECIFICATIONS OF TRADE RECEIVABLES UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS

Abstract

This article discusses the specifics of accounting for trade receivables based on of International Financial Reporting Standards (IFRSs), using analysis and synthesis of international financial reporting standards (IFRSs) and scientific sources, and modelling of practical situations, among other methods. Trade receivable are amounts from a business that are reported as a financial asset, which is a contractual right to receive cash or other financial assets from another business entity. IFRS establishes a common framework for the disclosure of financial information, ensuring transparency and comparability at the international level. The article highlights that although there is no separate standard for accounting of trade receivables, the accounting is based on the provisions of different standards related to the recognition of revenue and the assessment of debts. The article analyses practical situations related to the moment of occurrence of revenue and trade receivables, risk assessment and recognition of doubtful debts according to IFRS 9 and shows how specific business transactions related to the accounting of trade receivables are recorded according to IFRS.