Contract costs comprise costs that relate directly to the specific contract

Contract costs comprise costs that relate directly to

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• Contract costs comprise costs that relate directly to the specific contract, costs that are attributable to general contract activity and that can be allocated to the contract, together with other costs that are specifically chargeable to the customer under the terms of the contract.• Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of contract activity (the percentage of completion method of accounting).
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Summaries of current Standards and related Interpretations60Abbreviations IASB structure Members of the IASBIASB due processObtaining IASB pronouncements and publicationsIASB contact informationUse of IFRSs around the worldRecent pronouncementsSummaries of current Standards and related InterpretationsCurrent IASB agenda projectsInterpretationsIFRS Interpretation Committee current agenda issuesDeloitte IFRS resourcesDeloitte IFRS e-learningWebsite addressesSubscribe to our IFRS publicationsContactsBack to Contents• If the outcome cannot be estimated reliably, no profit is recognised. Instead, contract revenue is recognised only to the extent that contract costs incurred are expected to be recovered, and contract costs are expensed as incurred.• If it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately.InterpretationsRefer to IAS 18 for a summary of IFRIC 15 Agreements for the Construction of Real Estate.IAS 12 Income Taxes Effective datePeriods beginning on or after 1 January 1998. ObjectiveTo prescribe the accounting treatment for income taxes.To establish the principles and provide guidance in accounting for the current and future tax consequences of:the future recovery (settlement) of carrying amounts of assets (liabilities) recognised in an entity’s statement of financial position, and the transactions and other events of the current period that are recognised in an entity’s financial statements.Summary• Current tax liabilities and assets are recognised for current and prior period taxes, measured at the rates that have been enacted or substantively enacted by the end of the reporting period.• A temporary difference is a difference between the carrying amount of an asset or liability and its tax base.
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Summaries of current Standards and related Interpretations61Abbreviations IASB structure Members of the IASBIASB due processObtaining IASB pronouncements and publicationsIASB contact informationUse of IFRSs around the worldRecent pronouncementsSummaries of current Standards and related InterpretationsCurrent IASB agenda projectsInterpretationsIFRS Interpretation Committee current agenda issuesDeloitte IFRS resourcesDeloitte IFRS e-learningWebsite addressesSubscribe to our IFRS publicationsContactsBack to Contents• Deferred tax liabilities are recognised for the future tax consequences of all taxable temporary differences with three exceptions:
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