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Unformatted text preview: l completion of the
Con’t However, if the accounts adopted the
recommendation of HKAS 11 of including some
profits or losses at various stages of the contract
then the tax computation may be based on those
accounts. The accounting basis must be
consistently followed and applied to all
contracts being carried out. 30 Valuation of Work in Progress on
) LT Contracts
LT The recommendations contained in HKAS 11 on
valuation of work in progress on long term contracts
will in general be admitted by the IRD (per DIPN 1
(revised) Valuation and Ascertainment). Except the
recommendation that a loss on a contract as a whole
recognised in the accounts as soon as it is foreseen. 31 IRD’s View on Treatment of Foreseen Loss IRD considers that a proportion of the overall
loss, calculated by reference to:
loss, Time (normally up to the due completion
date under the terms of the contract), or
date Expenditure incurred May be taken into account year by year
during the remainder of the contract period.
32 HKSA 11 Construction
Contracts When the out...
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This note was uploaded on 04/02/2013 for the course ECON 20222 taught by Professor Junelau during the Spring '13 term at City University of Hong Kong.
- Spring '13