Revenue Recognition of Construction of Houses

Abstract

XYZ (Private) Limited is a medium scale construction entity, which construct houses for low income earning community. The shares of the entity are held by Mr. A and Mr. B who are also members of the board not-for -Profit entity of AB Sri Lanka. The entity does not deploy and execute construction contracts by itself; rather constructions are fully subcontracted for material and labor. Accounting policies and presentation of financial statements of the entity comply and adhere with Sri Lanka Accounting Standards (LKASs and SLFRSs).