DMCI restated the financials of its property-development arm as it shifted in accounting policy from
completed contract method to percentage of completion method, which was done to align with current accounting practice in the real-estate industry.
The property developer's financial results in the prior year were restated to reflect the shift in accounting policy from
completed contract method to percentage of completion method, aligning itself with the current accounting practice in the real estate industry.
Aspial has told SGX, that while it has made good progress in the sales and construction of its foreign projects, it cannot progressively recognise the revenue as the group applies the
completed contract method of accounting for its foreign projects.
Completed contract method With this method, you report all the income from a contract and deduct all the related job costs in the year the project is considered complete.
By contrast, a contract that qualifies as a home construction contract allows a taxpayer to account for income under the
completed contract method of accounting.
If the
completed contract method is required, all revenue related to the contract is recognized only when the contract is complete.
We use the
completed contract method if we cannot estimate the costs with a reasonable degree of reliability.
Deyaar said it has adopted a revenue recognition policy based on the recommendations of the International Accounting Standard Board relating to the International Financial Reporting Interpretations Committee (IFRIC) 15 u Agreements for the Construction of Real Estate, to recognise revenue based on the
completed contract method.
In line with global best practice, Deyaar has adopted a revenue recognition policy based on the recommendations of the International Accounting Standard Board (IASB) relating to the International Financial Reporting Interpretations Committee (IFRIC) 15 - Agreements for the Construction of Real Estate, to recognise revenue based on the
completed contract method.
The directives, each dated September 15, 2009, relate to the Tier I mixed service costs issue and two Tier II issues: contractual allowances in the health care industry and the super
completed contract method of accounting.
The lower revenue and net operating profit over half-year 2008 figures of AED 8,126 million ($2,212 million) and AED 3,011 million ($820 million), respectively are attributed to the overall economic slowdown following the global economic crisis, and Emaar's new revenue recognition policy based on
completed contract method.
As of January 1, 2009, Emaar has revised its revenue recognition policy based on the new recommendation of the International Accounting Standard Board (IASB) relating to the International Financial Reporting Interpretations Committee (IFRIC) 15 - Agreements for the Construction of Real Estate, to recognize revenue based on
completed contract method.
