Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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The construction industry faces unique financial reporting challenges due to project operations that may span several years. This two-day course examines international financial reporting issues in detail and their effect on entities in the construction industry, focusing on situations that the construction sector faces in accounting and reporting practices.

Through the use of examples, case studies, and real-world financial statements, course participants become familiar with the requirements, similarities and differences in construction-related financial reporting under both IFRS and US GAAP. IFRS guidance is primarily found in IAS 11 Construction Contracts and IFRIC 15 Agreements for the construction of Real Estate. US GAAP requirements arise from a variety of sources, including Accounting Research Bulletin (ARB) No. 45 Long-Term Construction-Type Contracts, Statement of Position (SOP) 81-1 Accounting for Performance of Construction-Type and Certain Production-Type Contracts, and the AICPA Audit and Accounting Guides (AAG) for construction contractors.

By reference to accepted accounting practices in the industry, participants leave this course with practical knowledge of the accounting standards that are applicable to the construction sector. Program attendees, for example, learn how to apply both the percentage-of-completion and completed-contract methods, how to account for anticipated job losses and when to apply the appropriate reporting for changes in estimates, in addition to gaining an understanding of the disclosure requirements and other issues that are unique to the construction industry.

This course expands participants' current knowledge of construction-industry accounting and also provides information on the most recent pronouncements affecting the sector and anticipated upcoming changes, as well as developing an awareness of issues that may arise during the convergence of IFRS and US GAAP requirements.

The program answers questions such as:

• What accounting requirements apply to claims, change orders and estimate revisions?

• When and how are anticipated job losses recognized on the financial statements?

• How are the percentage-of-completion and completed-contract methods applied?

• What interim reporting requirements and issues are significant to construction companies?

• What are the pending issues and recent accounting pronouncements of interest to the construction industry?

Prerequisites

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Intermediate understanding of accounting principles based on any national standards.
No advance preparation is required for this course.

Course Level

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Overview

Topics

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• Types of Construction Contracts
• Asset construction, restoration, destruction, environmental-related
• Services related to construction
• Fixed price contracts
• Cost-plus contracts
• Combining and Segmenting Contracts
• General guidance
• Conditions for combination
• Conditions for segmentation
• Measuring Contract Revenues and Costs
• Contract revenues
• Contract costs
• Percentage-of-Completion Accounting Method
• Recognizing revenues and costs
• Measuring progress
• Recognizing changes in estimates
• Accounting for claims and change orders
• Treatment of anticipated losses
• Financial statement presentation
• Interim reporting
• Completed-Contract Accounting Method Under US GAAP
• Restrictions on use
• Accounting for Closed or Terminated Contracts
• Disclosures
• Recent and Upcoming Issues
• Recently issued standards, interpretations and their impact on construction firms
• Exposure Drafts that will affect the construction industry
• IFRS-US GAAP convergence update
• IASB-FASB projects and plans of interest to construction companies

Course Benefits

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• Learn practical answers to typical construction-related questions on claims, change orders and estimate revisions
• Accurately account for anticipated jobs losses
• Apply both the percentage-of-completion and completed-contract methods
• Understand interim reporting requirements
• Comply with financial statement presentation and disclosure requirements
• Become familiar with recent accounting pronouncements affecting the construction industry
• Gain an awareness of pending issues and their affect on construction companies

Teaching Method

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• Live group instruction, with interactive participation encouraged
• Identification of the critical issues affecting financial reporting in the construction industry
• Succinct examples and cases that demonstrate classification and accounting for construction-related transactions
• Review of real-world financial statements to illustrate the application of accounting requirements
• Presentation and discussion of recommended financial statement disclosures
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Continuing Professional Education (CPE)

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16 hours

Venue

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All of our Dubai seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands.

Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available.

Coffee and lunch will be provided.