Managing trading profiles in the construction industry

By M_Sindaha

image

For construction firms undertaking long-term, high-budget projects, accounting for long-term contracts (project accounting) is a requirement under IFRS. However, many construction businesses struggle to meet some key requirements. These include capturing and allocating all costs to projects/jobs, accurately assessing appropriate stages of project completion and allocating profits on projects to the correct accounting period. As a result, they may fail to accurately calculate profitability by project, resulting in poor decision-making.

To bring in additional complexities, IAS 11: Construction Contracts has now been replaced by a new standard called IFRS 15 Revenue from Contracts with Customers in order to provide a more robust framework for addressing revenue issues and to improve comparability of revenue recognition practices across industries.

Get in touch

Whatever your question our global team will point you in the right direction

Start the conversation
Get in touch
x
x

Share to:

Copy link:

Copied to clipboard Copy