CTHRepealedLegislation
AASB 111 - Construction Contracts - July 2004
Recognition of Expected LossesRecognition of Expected Losses
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Recognition of Expected Losses
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.