♦ IFRIC 15 to be implemented only in Jan 2012. From our recent checks with a few
developers, the effective implementation date for the new accounting standard – IFRIC 15(International Financial Reporting Interpretations Committee) on real estate development has been deferred to Jan 2012, from July 2010 previously. According to MASB’s website, the deferment was to allow stakeholders to continue deliberating its implementation as it noted that the sell-and-build business model used by developers in Asia, where both the seller and buyer share certain elements of risk over the real estate-in-progress, differs from real estate business models employed elsewhere. As such, developers’ earnings will continue to be recognised based on percentage of completion, i.e. progressive billings method, rather than completion method under the IFRIC 15.
Property Sector Update : IFRIC 15 deferred to 2012 - 01/09/2010
No comments:
Post a Comment