IFRS for SMEs - Section 23 Revenue - Construction Contracts 2025

Price:
R1150.00 (VAT Incl.)
Level:
Accounting Professionals
Sub-level:
IFRS for SMEs
Lecturer:
Tristan David-Crewe White
Duration:
240 Minutes
Additionals:
   CPD Assessment
   Certificate

Lesson Outline


Section 23 Revenue incorporates the specialised requirements and considerations around construction contracts accounting.

Section 23 of IFRS for SMEs differs from IFRS 15 Revenue in terms of construction contracts accounting, in that the approach in IFRS for SMEs is based on the percentage of completion method as opposed to IFRS 15’s focus on the transfer of distinct goods and services to the customer.

This section provides guidance on how to account, not only, for the revenue but also the costs from a construction contract.

Content

The following requirements from IFRS for SMEs Section 23 Revenue will be unpacked relative to construction contracts from the perspective of the contractor:

  • Recognition based on the unique recognition principles for these types of contracts
  • Measurement principles
  • Costs incurred as part of construction contracts
  • Onerous contracts provisions and contingent liabilities
  • Presentation and disclosure

NOTE: IFRS 15 Revenue will NOT BE DISCUSSED