When the outcome of a construction contract can be estimated reliably,contract revenue and contract costs associated with the construction contract shall be recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date.

Question

Quizplus · Accepted Answer

This statement is in accordance with the International Financial Reporting Standards (IFRS) 15, paragraph 35, which states that revenue and costs related to a construction contract shall be recognised by reference to the stage of completion of the contract activity at the reporting date when the outcome of the contract can be estimated reliably.

When the Outcome of a Construction Contract Can Be Estimated