Example 5.2
• (a) that are not fully enforceable, i.e. their validity is seriously in
question;
• (b) the completion of which is subject to the outcome of pending
litigation or legislation;
• (c) relating to properties that are likely to be condemned or
expropriated;
• (d) where the customer is unable to meet its obligations; or
• (e) where the contractor is unable to complete the contract or
otherwise meet its obligations under the contract.
Prepared By: Amirus Salat 22
Recognition of revenue from rendering of
services and from construction contracts
(Continued)
Table 5.3 Revenue recognition for construction contracts: the effect of variations and claims
Table 5.6 Revenue, costs and profit recognised for the construction contract
Table 5.8 Revenue, costs and profit recognized for the construction contract – first method
Table 5.10 Revenue, costs and profit recognized for the construction contract – second method