In May 2014, the International Accounting Standards Board (IASB) published a new standard, IFRS 15 Revenue from contracts with customers (IFRS15), which significantly impacts real estate companies.
The new revenue standard requires entities to review the terms and conditions of their existing contracts to identify all goods and services sold to customers. Do you fully understand the financial and accounting implications of your contracts? IFRS 15 contains new guidance in determining whether a cost should be capitalized or expensed when incurred. Have you assessed their practical impacts on your planning?
Under the new standard, revenue recognition overtime (percentage of completion) is not an automatic right but subject to conditions. One or more of the new requirements will affect revenue recognition for UAE companies.