REVENUE RECOGNITION ALGORITHMS AND DIGITAL ACCOUNTING SYSTEMS: THE IMPACT OF IND AS 115 IN IT ORGANIZATIONS

DOI: https://doie.org/10.65985/APER.2026983559

Authors:

Prasanna P, Dr. Annette Christinal

Keywords:

Digital Accounting; Ind AS 115; Revenue Recognition; Financial Reporting; Structural Equation Modeling; ERP Systems; IT Organizations; Thematic Analysis; Financial Decision Science

Abstract:

Purpose: This paper looks at how the digital accounting-based revenue recognition practices based on Ind AS 115 affect financial reporting in IT based organization, the key issue is to identify the effect that technology-based systems have on compliance, accuracy, and decision making. Design/Methodology: A quantitative/qualitative research design was employed, which entails a mix of both quantitative and qualitative research methods. A structured questionnaire was given to 500 finance professionals to collect primary data, which was analyzed using SPSS and AMOS using Structural Equation Modeling (SEM). Also, 15 managers were interviewed to give qualitative information that was then subject to thematic analysis to give a contextual view. Findings: Findings indicate that there is a positive but weak relationship between revenue recognition based on digital accounting and financial reporting ( 0.21). Digital systems promote transparency and efficiency and adherence to Ind AS 115. Nevertheless, their total efficiency is hampered by difficulties in integrating systems, complexity in dealing with variable consideration and inadequacy of skills. Research Limitations: The research is restricted to IT and ITeS companies and employs non probability sampling, which can influence the generalizability. The cross-sectional design is also limiting to the possibility of capturing changes with time. Practical Implications: The results indicate that organizations should invest in sophisticated digital accounting systems and at the same time put emphasis on the training of employees and integration of the systems to ensure that the benefits are maximized. Originality/Value: The research is relevant as it combines digital accounting systems and practices of recognizing revenue under Ind AS 115 to provide a triangulated view of both quantitative and qualitative information.

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