Contract manufacturing and accounting transactions according to TFRS 15 revenue from contracts with customers

The contract manufacturing that carries great importance for both the global economic order and Turkey, is a widely preferred mode of outsource production system in textile and apparel industries. In this study, it is aimed to examine the accounting transactions of the contract manufacturing companies operating in the textile and apparel sector with reference to TFRS 15 Revenue from Contracts with Customers Standard. In Turkey, on 28 May 2014 TFRS 15 Revenue from Contracts with Customers Standard was issued by The Public Oversight, Accounting and Auditing Standards Authority and it was decided to be implemented as of January 1, 2018. This study suggests that, the subcontracting production companies applying TFRS 15 Revenue from Contracts with Customers, which propose a five-stage model, would be effected by the accounting of revenue, which is the fifth stage.