IAS Plus Newsletter — IFRIC 15: Accounting for Agreements for the Construction of Real Estate
On 3 July 2008, the International Financial Reporting Interpretations Committee (IFRIC) issued IFRIC 15 Agreements for the Construction of Real Estate. The Interpretation addresses the accounting for revenue and associated expenses by entities that undertake the construction of real estate directly or through subcontractors. Agreements within the scope of IFRIC 15 are described as ‘agreements for the construction of real estate’, and may include the delivery of other goods or services.
IFRIC 15 addresses two (related) issues: