Under the IAS 11.3, A construction contract is a specific contract negotiated to build a fixed … See more

Construction in progress, or most commonly known as CIP, is a fixed asset account with a natural debit balance. We can define Construction in Progress as, It is an accounti… See more

According to the matching principle of accounting of accrual accounting, the expenses related to certain revenues must be recorded in the same period when they were incurr… See more

In most cases, the term of process or progress can be used interchangeably. However, there are chances that the term process written in a financial statement instead of p… See more

Build to use can be an extension in an existing office facility, building a new plant, warehouse, or any business asset. The accounting treatment for the ‘build to use’ CIP is not … See more