APPLICATION OF TFRS 15 STANDARD IN CONSTRUCTION CONTRACTING WORA

Abstract

TFRS 15: Revenue from Customer Contracts Standard applies primarily to construction, real estate, IT, services, etc. Determining the fair value of revenue in these fields and reporting it in the financial statements is important for businesses and other users affiliated with the business. The main problem in accounting for revenue in multi-year construction and contracting businesses is when the revenue will be accrued in the basic financial statements and when and in which account items the income and expenses of the construction contracting business should be recognized. The basic starting point in accounting for revenue is that, in accordance with the concept of periodicity, one of the basic concepts of accounting, income and expenses must be recognized in their respective periods on an accrual basis.

The aim of this article is to show with sample applications how to record and transfer revenue to the records in the construction sector, which has become a leading sector in the economy in the world and in Turkey, and in multi-year construction contracting contracts.