What's the difference between IAS 11 and IFRS 15 (in the part of construction contracts)?
Unlike IAS 11 IFRS 15 prescribes treating construction contracts the same way as any other contract with customers. The following are issues that were not covered in IAS 11, but are introduced in IFRS 15 : A ) IFRS 15 sets up the 5-steps model for revenue recognition: Identify contract with the customer. Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price to the performance obligations in the contract. Recognize revenue when (or as) an entity satisfies a performance obligation. B) Revenue should be recognized when (or as) the entity satisfies a performance obligation by transferring a promised good or service (ie an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. C) If an entity performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, the en