The Effect of Adoption Thai Financial Reporting Standard 15 Revenue from Contract with Customers on Earnings Quality of Companies in the Property and Construction Sectors in Stock Exchange of Thailand

Abstract

The objective of this research is to investigate the relationship between the change in revenue and
earnings quality. The study of earnings quality is conducted by analyzing management discretion in accruals
based on The Modified Jones model (Dechow, Sloan & Sweeney, 1995) and Yoon, Miller and Jiraporn (2006)
model and comparing those discretionary accruals between pre-adoption and post-adoption of TFRS 15
Revenue from Contracts with Customers which was firstly implemented in Thailand in B.E. 2562. The data
is collected from samples of company in the property and construction development industry in the
Stock Exchange of Thailand. The Collected data was analyzed by using descriptive statistics and inferential
statistics methods.
The results reveal that according to The Modified Jones Model, the change in revenue is correlated
with the earnings quality through discretionary accruals, whereas Yoon Model shows no essential correlation
between the change in revenue and earnings quality through discretionary accruals. In addition, there is no
difference when comparing discretionary accruals based on The Modified Jones Model and Yoon Model
between the pre-adoption and post-adoption of Thai Financial Reporting Standard (TFRS) 15.