Real Estate Construction
07 August 2013
Keywords: Mazars, Thailand, Accounting, IAS 11, IAS 18
When the agreement is within the scope of IAS 11 and its outcome can be estimated reliably, the entity shall recognise revenue by reference to the stage of completion of the contract activity.
In contrast, an agreement for the construction of real estate in which buyers have only limited ability to influence the design of the real estate, eg to select a design from a range of options specified by the entity, or to specify only minor variations to the basic design, is an agreement for the sale of goods within the scope of IAS 18 “Revenue”.
For more information, please see the below IAS 11 Decision Tree.