Examining the Impact of Project Accounting Digitalization and IFRS 15–Based ERP Systems on Revenue Recognition Quality in Construction Firms
Keywords:
Project accounting digitalization, ERP systems, IFRS 15, Revenue recognition, Construction firmsAbstract
Digital transformation in accounting systems has become a major driver of improvements in financial reporting quality. In project‑based industries such as construction, the complexity of long‑term contracts makes accurate revenue recognition particularly challenging. Technologies such as project accounting digitalization and enterprise resource planning (ERP) systems aligned with International Financial Reporting Standard IFRS 15 can improve the accuracy, transparency, and consistency of revenue recognition processes.
This study examines the impact of project accounting digitalization and IFRS 15–based ERP systems on revenue recognition quality in construction firms, with particular attention to the mediating role of internal control quality. The study adopts a quantitative and explanatory research design. Data from 210 observations were analyzed using structural equation modeling (SEM).
The results indicate that project accounting digitalization and IFRS 15–based ERP implementation both have a positive and statistically significant effect on revenue recognition quality. In addition, internal control quality partially mediates these relationships, indicating that strong internal control systems enhance the effectiveness of digital accounting technologies.
The findings highlight the importance of integrating digital accounting infrastructures with robust internal control mechanisms to improve financial reporting transparency and reliability in project‑based industries.
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Copyright (c) 2025 Elena Hosseinpour; Elham Mohseni Nasab (Author)
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