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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 11
Construction Contracts
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 11 |
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IAS 11
Construction Contracts Issued in
December 1993 Recent amendment:
by IAS 1 revised in September 2007 |
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A cost
plus contract --> a construction contract --> the contractor is paid for defined costs + fee --> fee can be a percentage of costs or fixed fee |
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A fixed
price contract --> a construction contract --> the contractor agrees to (1) a fixed contract price or (2) a fixed rate per unit of output |
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Contract
revenue includes: (1) initial amount of revenue (per contract) (2) variations in contract work |
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Contract
revenue is measured --> at fair value --> of the consideration received (or receivable) |
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Percentage
of completion method --> recognition by reference to the stage of completion |
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Contract
revenue and expenses are --> recognised by reference to the stage of completion --> at the end of the reporting period |
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Expected
loss on the contract --> recognised immediately as an expense --> when it is probable that total contract costs > total contract revenue |
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IAS 11 Technical Notes |
