Peculiarities of Accounting for Assets and Liabilities in Contracts with Customers that Contain a Significant Financing Component

The purpose of the article is substantiation the methodical support of accounting for contract assets, receivables, and contract liabilities in the contracts with customers that contain a significant financing component. Subject of the research includes contract assets, receivables and contract liabilities in the contracts with customers, which contain a significant financing component. During the research the author applied general and specific scientific methods of cognition: induction, deduction, comparison, a tabled method, an effective interest rate method, a discounted cash flow method. The procedures of accounting for assets and liabilities arising from the contracts with customers, which have a significant financing component, were considered. The recommendations of IFRS 15 regarding recognition of a significant financing component were analyzed. Disclosed the model of revenue recognition in contracts with a significant financing component, which comprises four consistent steps: identification of a significant financing component, its assessment, discounting, and revenue recognition. The article explains economic meaning of contract assets and receivables that arise when terms of the contract provide the customer with benefits identified as a significant financing component. The accounting procedures for recognition of contract liabilities that arise when terms of the contract provide benefits for a seller identified as a significant financing component were disclosed. The procedures for impairment of receivables under IFRS 9, recognized in the contracts with customers, which contain a significant financing component were explained.