Industries We Serve
Technical Accounting for Construction
Long-term contracts, retentions, and joint arrangements make construction one of the most technically demanding sectors under IFRS 15 revenue recognition.
Sector Challenges
Accounting Issues Specific to Construction
- Revenue recognition over time for long-term construction contracts
- Contract assets, contract liabilities, and retentions accounting
- Variable consideration for variations, claims, and liquidated damages
- Joint arrangements and joint operations for construction consortia
- Onerous contract provisions under IAS 37
Who We Work With
- CFOs and Finance Directors in construction
- Finance teams preparing for external audit
- Businesses undergoing acquisition or investment
- Multinational subsidiaries reporting under IFRS
Standards We Apply
Relevant IFRS & Accounting Standards
FAQs
Common Questions
How is revenue recognised on long-term construction contracts?
Under IFRS 15, revenue on long-term construction contracts is typically recognised over time using an input or output method that measures progress toward completion, provided the contract meets the over-time recognition criteria.
How should retentions be accounted for?
Retentions withheld by the customer are typically recognised as a contract asset or receivable, discounted where the financing component is significant, and derecognised once the retention is released under the contract terms.
Other Industries
Sector-Specific Expertise Across Industries