IFRIC D21 Real Estate Sales
References

History

  • IFRIC D21 issued 4 July 2007. Click for Press Release (PDF 63k).
  • Comment deadline 5 October 2007
  • The draft Interpretation was available publicly on the IASB's Website during the comment period.
  • IFRIC Interpretation 15 Agreements for the Construction of Real Estate was issued 3 July 2008.

Deloitte Letter of Comment on this Draft Interpretation

Important: IFRIC D21 resulted in the final IFRIC Interpretation 15, issued 3 July 2008. The information on this page reflects the IFRIC's discussions during the development of the final interpretation, including tentative decisions that were changed along the way. We have retained this page for historical purposes only.

SUMMARY OF IFRIC D21

IFRIC D21 aims to standardise accounting practice among real estate developers for sales of units, such as apartments or houses, 'off plan', that is, before construction is complete. At present, real estate developers interpret IFRSs differently and record revenue for the sale of the units at different times. Some record revenue only when they have handed over the completed unit to the buyer, while others record revenue earlier, as construction progresses, by reference to the stage of completion of the development.

IFRIC D21 proposes that revenue should be recorded as construction progresses only if the developer is providing construction services, rather than selling goods (completed real estate units). It proposes features that indicate that the seller is providing construction services. In many countries, these features tend currently not to be present in typical off plan sale agreements.

Comment deadline is 5 October 2007.


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