Accounting for Construction Contracts

[kmeechin]

The "Accounting for construction contracts" is an international accounting standard(i.e. IAS11). In Malaysia, does this standard apply to SME's construction company as well? If a contract that only take one to six month(s) to complete, does this contract apply to IAS11?

[nabeelanwer]

IAS 11 aplicable to only long term contracts(i.e. a contract which falls in two accouting periods)

[kmeechin]

nabeelanwer, what u mean by 2 accounting period?? A contract must at least 2years?? Can u show me where i can find the condition applicable to IAS 11? Then the accounts of short-term contract totally no need to show in financial year izit?

[nabeelanwer]

i mean for allocation of revenues and costs of long term contracts work in progress, go for ISA 11.