Real life implications of IFRS 15 on Revenue recognition for real estate contracts

Question

Accepted Answer

IFRS 15 impacts real estate revenue recognition by changing timing and method of revenue recognition.

IFRS 15 requires revenue to be recognized when control of the property is transferred to the buyer, rather than when risks and rewards are transferred.
Real estate developers may need to adjust their financial statements and contracts to comply with the new standard.
IFRS 15 also requires more detailed disclosures about revenue recognition policies and significant judgments made in applying the standard.
The impact of IFRS 15 on real estate contracts can vary depending on the specific terms and conditions of each contract.
For example, under IFRS 15, developers may need to allocate transaction price to performance obligations such as construction services and land sales separately.

Top PwC Project Manager interview questions & answers