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How are advances paid to contractors (for constructing an asset) accounted at the end of the year?


How are advances paid to contractors (for constructing an asset) accounted at the end of the year? For example 100% of the cost of an asset is transfered to contractor, but they have build only 50% of the asset, yet.

asked Feb 26, 2014 in IAS 16 - Property, Plant and Equipment by anonymous

1 Answer

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Best answer
If the construction is not complete, It should just be an advance or prepayment on the balance sheet.
answered Feb 26, 2014 by Ritesh Level 1 Member (1,550 points)


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