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 Withdrawn for periods starting on or after 1 January 2018 when IAS 11 is superseded by IFRS 15 Revenue from Contracts with Customers.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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|1 January 2017 – 31 December 2017||IAS 11 2017 Required Standards|| -
The following interpretations refer to IAS 11
IFRIC 12 Service Concession Arrangements
Accounting guidance for arrangements where a contract is granted for the supply of public services such as roads.
- IFRIC 15 Agreements for the Construction of Real Estate
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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