Version date: 10 February 2017 - onwards
Recognition of expected losses (paras. 36-37)
Superseded by IFRS 15: Revenue from Contracts with Customers for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted.
36 When it is probable that total contract costs will exceed total contract revenue, the expected loss shall be recognised as an expense immediately.
37 The amount of such a loss is determined irrespective of:
(a) whether work has commenced on the contract;
(b) the stage of completion of contract activity; or
(c) the amount of profits expected to arise on other contracts which are not treated as a single construction contract in accordance with paragraph 9.