Revenue Recognition Under IFRS for SMEs: How to Apply Steps 4 and 5 to Real Contracts

Your construction client has been recognising revenue at completion for fifteen years. Under the new Section 23, that might be wrong. Not fraud. But wrong enough that the profit figure, the balance sheet, and what the bank sees at year end all look different. The new rules turn on one word: control. Revenue goes in when control passes to the customer. Not when you invoice. Not when you get paid. For a builder on a client's land, that is every month as the work progresses. For a property developer selling off-plan, it depends entirely on what the contract says. Get it wrong and you get the year wrong.