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IAS 11 Construction Contracts

IAS 11 Construction Contracts prescribes the accounting treatment of revenue and costs associated with construction contracts.

Revised December 1993. Effective 1 January 1995. Withdrawn for periods starting on or after 1 January 2018 when IAS 11 is superseded by IFRS 15 Revenue from Contracts with Customers. 

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  • A construction contract is a contract for the construction of an asset or group of interrelated assets.
  • A construction contract can be estimated reliably when a reliable estimate can be made of contract revenue, costs to complete the contract and stage of completion.
  • If the outcome of a construction contract can be estimated reliably, revenue and costs should be recognised in proportion to the stage of completion of the contract.
  • If the outcome cannot be estimated reliably, no profit should be recognised and revenue should only be recognised to the extent that costs incurred are recoverable.
  • Any expected loss on a contract should be recognised immediately.

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Effective version of standard
Notes on amendments 
1 January 2017 – 31 December 2017 IAS 11 2017 Required Standards  -

The following interpretations refer to IAS 11

Standardises accounting practice for the recognition of revenue by property developers for ‘off plan’ sales.

This page was last updated 30 January 2020

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