IAS-11 – Construction Contracts

If the total revenue, past and future costs, and the stage of completion of a contract can be measured or estimated reliably, revenues and costs should be recognised by stage of completion (the “percentage-ofcompletion method”). The expected losses should be recognised immediately. If the outcome cannot be measured reliably, costs should be expensed, and revenues should be recognised to the extent that costs are recoverable (“cost recovery method”).