Project Accounting under IFRS and Revenue Recognition

Project accounting under IFRS focuses on the accurate measurement, recognition, and reporting of revenues, costs, and profits arising from long-term and complex contracts. This area is particularly important for organizations involved in construction, engineering, infrastructure, IT, and other project-based industries where performance obligations are satisfied over time or at a point in time.

The programme provides an in-depth understanding of IFRS requirements—particularly IFRS 15 Revenue from Contracts with Customers—and their application to project-based activities. Participants will explore contract pricing, cost allocation, profit recognition methods, contract modifications, and judgments required in estimating project outcomes.

Emphasis is placed on practical application, enabling participants to interpret contractual terms, manage project budgets, assess risks, and ensure compliance with IFRS revenue recognition principles. By strengthening project accounting practices, organizations can improve financial transparency, control project performance, and support informed decision-making.

Objective

• Understand the principles and requirements of IFRS applicable to project accounting
• Apply IFRS 15 to recognize revenue from project-based contracts accurately
• Identify and account for project costs, including direct costs and contract acquisition costs
• Determine appropriate pricing, profit recognition, and cost allocation methods
• Assess contract modifications, variations, and claims under IFRS
• Apply judgment in estimating project outcomes, including costs, revenues, and margins