IAS 11 és IFRS 15 összehasonlítás (KPMG)

IAS 11 és IFRS 15 összehasonlítás (KPMG) - IFRS Impacts...

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IFRS Impacts on the construction industry of the new revenue standard September 2014 kpmg.com/ifrs
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Contents The devil is in the detail 1 1 Critical judgements at contract inception 2 1.1 Pre-contract costs 2 1.2 Contract performance obligations 3 1.3 How to account for revenue: over time or at a point in time 4 2 Critical judgements during the contract life cycle 6 2.1 Contract costs 6 2.2 Contract progress 7 2.3 How to measure revenue: variable consideration 7 2.4 Contract modifications 9 2.5 Loss-making contracts 10 3 Disclosures 12 4 Next steps 14 KPMG’s Building and Construction practice 15 Contact us 15
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Impacts on the construction industry of the new revenue standard | 1 © 2014 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. The devil is in the detail Recently the IASB and FASB released a new joint standard on revenue recognition IFRS 15 1 Revenue from Contracts with Customers , which is effective from 1 January 2017 and brings together in one standard, the core principles for revenue recognition across all sectors. It also withdraws the current standard that provides specific guidance on contract accounting – IAS 11 Construction Contracts . The construction industry has effectively lost its contract accounting ‘rule book’ and will now be guided by the principles of the generic revenue standard. Earlier draft versions of IFRS 15 raised concerns in the construction sector that the ability to recognise revenue from construction activities progressively would be curtailed or removed completely. KPMG supported its clients in the construction industry in their pursuit for retaining progressive revenue recognition and this is largely reflected in the new standard. As a result, contractors will often find that applying the new standard to a traditional construction contract results in a revenue accounting outcome broadly similar to current stage of completion. Concerns expressed earlier in the development of the standard that revenue may be deferred until practical completion, or that a single contract may be broken down into many small accounting units, have largely been addressed. Nevertheless, the devil is in the detail. IFRS 15 introduces many new concepts for revenue and cost recognition. In this publication, we seek to draw out key areas of potential change by considering the life cycle of a typical construction contract. The most notable change for construction contracts is that under IAS 11, recognition of revenue and profits on a percentage of completion basis was required where an arrangement met the definition of a construction contract. Under IFRS 15, progressive revenue recognition will only be permitted where the enforceable contractual rights and obligations satisfy certain criteria.
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  • Spring '17
  • Jane Smith
  • new revenue standard, KPMG IFRG Limited

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