MECHANISM FOR REVENUE RECOGNITION AND COST ALLOCATION UNDER A CONSTRUCTION CONTRACT
The article considers the specifics of the organization of accounting for income and expenses in the construction industry, reflects a step-by-step procedure for working with contracts for revenue recognition and identifies the mechanism for revenue recognition and cost allocation. When accounting for revenue from work with a long production cycle, accountants have questions and, despite the availability of answers in the legislation both under RAS and in the IFRS system, the problems remain relevant. In the construction industry, there are cases when it is impossible to reliably determine the financial result of the execution of the contract in a certain reporting period, therefore, the revenue under the contract is calculated by the organization independently "as soon as it is ready" - by determining the degree of completion of the work. Since the standards (PBU 2/2008 and IFRS 15) allow for the possibility of using this method, the method of assessing the degree of completion of work should be fixed in the accounting policy for accounting purposes, since this affects the financial result and reporting indicators. However, despite the apparent simplicity of solving this problem in practice, accountants are faced with the lack of internal regulations and methods that establish a list of criteria according to which the company's expenses are distributed.