Subject This article deals with the issues of development of a methodological basis of recognition and estimation of the proceeds defined by the contract with the customer. Objectives The article aims to prove the necessity of introduction of new objects in the subject of accounting, that is contractual obligation and contract law. They will allow to expand the sphere of accounting and at the same time reflect the processes of transformation of trade payables in revenue from contracts with customers. Methods The research methodology is based on the positive and normative economics theories. For the study, we used the methods of observation, abstraction, deduction and induction, and statistical and ex post analyses. Results The article proves that the trade payables must be recognized as an object of accounting. It presents a developed model of accounting reflection of financial and commercial process of transformation of trade payables in revenue from contracts with customers. Conclusions Changes in the value of an asset transferred to the customer's control should be reflected in other aggregate income and not affect the amount of revenue. The significance of the study is confirmed by accounting procedures. The study proves the need to clarify the subject of accounting by introducing contractual obligations in its definition.
Keywords: revenue from contracts with customers, assessment, trade payables, turn goods/works/services over to customer, control
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