IFRS 15 construction industry

IFRS 15 impacts for the construction industry

Entities in the construction industry have previously followed their own standard (IAS 11 Construction Contracts) that contained specific guidance for the recognition of revenue from construction contracts. This has now been replaced by a generic revenue standard called IFRS 15 Revenue from Contracts with Customers. The new revenue standard will likely bring about additional complexities for accountants who prepare financial reports for construction entities in addition to potentially changing the pattern of revenue recognition.