Aldar adopts IFRS 15 revenue recognition standard
Following a detailed review of IFRS 15, the board has taken the decision to adopt this standard from 1 January 2015
Abu Dhabi based property developer Aldar Properties announced changes to its accounting policies that will apply to its 2015 financial statements.
Following a detailed review of IFRS 15, the board has taken the decision to adopt this standard from 1 January 2015.
The profile of revenue and profit recognition may therefore change for Aldar as a result of the introduction of IFRS 15.
The most important change may relate to the timing of revenue recognition from off plan developments.
"Currently, revenues from off plan developments are recognised at a point in time on delivery of a completed unit. Under IFRS 15 Aldar may also recognise revenues over time up to the point of completion based on the terms of our contracts," said the company in a filing with Abu Dhabi Stock Exchange.
The H1 2015 financial statements for Aldar Properties PJSC will reflect the full adoption of IFR15.