Malaysian Financial Reporting Standard
MFRS 111
Malaysian Financial Reporting Standard 111
Construction Contracts
This version includes amendments resulting from MFRSs with effective dates no later than 1 January 2012.
495
MFRS 111
CONTENTS paragraphs Preface
MALAYSIAN FINANCIAL REPORTING STANDARD 111
CONSTRUCTION CONTRACTS
OBJECTIVE
SCOPE
1–2
DEFINITIONS
3–6
COMBINING AND SEGMENTING CONSTRUCTION
CONTRACTS
7–10
CONTRACT REVENUE
11–15
CONTRACT COSTS
16–21
RECOGNITION OF CONTRACT REVENUE AND EXPENSES
22–35
RECOGNITION OF EXPECTED LOSSES
36–37
CHANGES IN ESTIMATES
38
DISCLOSURE
39–45
EFFECTIVE DATE
496
46
©
IFRS Foundation
MFRS 111
Malaysian Financial Reporting Standard 111 Construction Contracts (MFRS 111) is set out in paragraphs 1–46. All the paragraphs have equal authority. MFRS 111 should be read in the context of its objective, the Foreword to Financial Reporting
Standards and the Conceptual Framework for Financial Reporting. MFRS 108
Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance
©
IFRS Foundation
497
MFRS 111
Preface
The Malaysian Accounting Standards Board (MASB) is implementing its policy of convergence through adopting International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) for application for annual periods beginning on or after 1 January 2012. The IASB defines IFRSs as comprising: (a)
International Financial Reporting Standards;
(b) International Accounting Standards;
(c)
IFRIC Interpretations; and
(d) SIC Interpretations.
Malaysian Financial Reporting Standards (MFRSs) equivalent to IFRSs that apply to any reporting period beginning on or after 1 January 2012 are:
(a)
Malaysian Financial Reporting Standards; and
(b) IC Interpretations.
First-time application of MFRSs equivalent to IFRSs
Application of this Standard will begin in the first-time adopter’s * first annual
Malaysian Financial Reporting Standard 111
Construction Contracts
This version includes amendments resulting from MFRSs with effective dates no later than 1 January 2012.
495
MFRS 111
CONTENTS paragraphs Preface
MALAYSIAN FINANCIAL REPORTING STANDARD 111
CONSTRUCTION CONTRACTS
OBJECTIVE
SCOPE
1–2
DEFINITIONS
3–6
COMBINING AND SEGMENTING CONSTRUCTION
CONTRACTS
7–10
CONTRACT REVENUE
11–15
CONTRACT COSTS
16–21
RECOGNITION OF CONTRACT REVENUE AND EXPENSES
22–35
RECOGNITION OF EXPECTED LOSSES
36–37
CHANGES IN ESTIMATES
38
DISCLOSURE
39–45
EFFECTIVE DATE
496
46
©
IFRS Foundation
MFRS 111
Malaysian Financial Reporting Standard 111 Construction Contracts (MFRS 111) is set out in paragraphs 1–46. All the paragraphs have equal authority. MFRS 111 should be read in the context of its objective, the Foreword to Financial Reporting
Standards and the Conceptual Framework for Financial Reporting. MFRS 108
Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance
©
IFRS Foundation
497
MFRS 111
Preface
The Malaysian Accounting Standards Board (MASB) is implementing its policy of convergence through adopting International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) for application for annual periods beginning on or after 1 January 2012. The IASB defines IFRSs as comprising: (a)
International Financial Reporting Standards;
(b) International Accounting Standards;
(c)
IFRIC Interpretations; and
(d) SIC Interpretations.
Malaysian Financial Reporting Standards (MFRSs) equivalent to IFRSs that apply to any reporting period beginning on or after 1 January 2012 are:
(a)
Malaysian Financial Reporting Standards; and
(b) IC Interpretations.
First-time application of MFRSs equivalent to IFRSs
Application of this Standard will begin in the first-time adopter’s * first annual