Performance obligations construction industry

A construction contract may, in theory, be broken down into many promises that may need to be accounted for separately, the performance obligations construction industry. However, the contract for the construction service can continue to be accounted for as one performance obligation if the contractor can demonstrate that: Performance obligations construction industry

  • it will provide a significant integration service; Performance obligations construction industryConstruction industry performance obligations
  • the goods or services significantly modify or customise other goods or services promised in the contract; or
  • the goods and services within the contract are highly dependent on or integrated with other goods or services i.e. not distinct. Performance obligations construction industry

Given the integrated nature of contracting activities and that goods and services within the contract … Read more

Input method Measuring progress to completion

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Input method Measuring progress to completion is part of IFRS 15 Revenue from Contracts with Customers (contents page is here), which introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when. The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services. See a summary of IFRS 15 here.

Input methods

This section is part of step 5 Recognise revenue as or when each performance obligation is satisfied and the sub-step Measuring progress toward Read more

Measuring progress toward satisfaction of an obligation

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Measuring progress toward satisfaction of an obligation or to be more accurate in IFRS: Measuring progress toward complete satisfaction of a performance obligation

IFRS 15 Revenue from Contracts with Customers (contents page is here) introduced a single and comprehensive framework which sets out how much revenue is to be recognised, and when.

The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services. See a summary of IFRS 15 here.

This section is part of step 5 Recognise revenue as or when Read more