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IFRIC 15 Agreements for the Construction of Real Estate

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Superseded by IFRS 15.

IFRIC 15 deals with the timing of revenue recognition by real estate developers for sales of units, such as apartments or houses. The key question is whether the developer is selling a product—the completed apartment or house—or is selling a service—a construction service as a contractor engaged by the buyer.  Revenue from selling products is normally recognised at delivery. Revenue from selling construction services is normally recognised proportionally as construction progresses.  IFRIC 15 provides guidance for distinguishing between the two.

Standard history