Satisfaction of construction performance obligations

This narrative considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Provide property management services Construct and sell residential property IFRS 15 introduced a five step …

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Allocate the transaction price to the performance obligations

This narrative considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Allocate the transaction price to the performance obligation Own, operate and sell real estate Provide property management services Construct and sell …

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Determine the transaction price – property construction

This narrative considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Provide property management services Construct and sell residential property IFRS 15 introduced a five step …

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Performance obligations in a property management contract

This narrative considers key implications IFRS 15 Revenue from Contracts with Customers for real estate entities. It provides an overview of the revenue recognition model in IFRS 15 with a focus on entities that: Own, operate and sell real estate Provide property management services Construct and sell residential property IFRS 15 introduced a five step …

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Current and Non-current liabilities

The classification of financial liabilities into current and non-current is governed by the condition of those liabilities at balance sheet date. Current and Non-current liabilities Where rescheduling or refinancing is at the lender’s discretion, and it occurs after the balance sheet date, it does not alter the liability’s condition at balance sheet date. Accordingly, it …

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Implied price concession or Impairment loss

There is a significant difference in accounting for a price concession and an impairment loss. And we are not even close, it is even worse…. What about an implied price concession? Construction companies have a certain capacity of daily production/construction – OK, there is some flexibility by hiring temporary construction workers, but there is an …

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Construction contracts disclosures

IFRS 15 includes additional qualitative and quantitative requirements on construction contracts disclosures which were not included within IAS 11. Many of these disclosure requirements are narrative in nature. IFRS 15 refers to qualitative and quantitative disclosures, and the more significant disclosures introduced include the following. An entity discloses information about its contracts with customers to …

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