Superseded by IFRS 15: Revenue from Contracts with Customers for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted.
3 The following terms are used in this Standard with the meanings specified:
A "construction contract" is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and function or their ultimate purpose or use.
A "fixed price contract" is a construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses.
A "cost plus contract" is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee.
4 A construction contract may be negotiated for the construction of a single asset such as a bridge, building, dam, pip
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