Entities in the construction industry have previously followed FRS 11 Construction Contracts that contained specific guidance for the recognition of revenue from construction contracts. This has now been replaced by a more complex revenue standard FRS 115 Revenue from Contracts with Customers.
FRS 115 is difficult to apply for the construction industry due to the complex nature of its contracts. It is far more complex than the old FRS 11, and can significantly alter the pattern of revenue recognition and pattern of profit for the construction industry. It will not just be a mere accounting change but will have widespread implications to other business areas.
The workshop will discuss the additional complexities for accountants who prepare financial reports for construction entities in addition to potentially changing the pattern of revenue recognition. Auditors who need to audit construction contracts will also find this workshop relevant.
In addition, COVID-19’s accounting impact on construction contracts will also be discussed.
5 Steps to Revenue Recognition
Recognition of revenue
Question 2, 3, 4
Measurement of Revenue
Components of contract costs
COVID-19 Considerations for Accounting for Construction Contracts
Presentation and Disclosure
This workshop qualifies for 7.0 CPE hours in Financial Reporting Standards and Pronouncements (Category 1) .
Accountants and Auditors who would like to have a practical understanding of the Accounting for Construction Contracts under FRS 115
Sardool is an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He has been lecturing for the past 20 years, and is a highly sought-after seminar leader in the areas of Financial Reporting Standards, Cash Flow Statements, Analysis of Financial Statements, Consolidation and other technical accounting topics.
Sardool brings a commercial perspective to the understanding of complex Accounting Standards and simplifies the requirements of these Standards to enable the participants to have a clear understanding of the topic. Sardool is also the Chief Financial Officer of an investment company. Prior to his current appointment, he was the Group Financial Controller of a Singapore listed healthcare company. During his ten years in the healthcare industry, he was responsible for the entire Group financial functions and the IPOs of two subsidiaries on SESDAQ. He had also gained his working experience with KPMG Peat Marwick and a Japanese merchant bank.