In construction, company's are often faced with retentions (both receivable and payable) outstanding for long periods, regularly over 12 months after balance sheet date. It appears as though these retentions are however still classified as "current" in terms of IFRS. I would however argue that the normal operating cycle of a construction company ends before the settlement of all the retentions, and that these could thus partially be classed as non-current? Any comments to back this up or against this argument?
2007-08-15 22:33:02 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
You are right. But remember that the IFRS refer to only material items. Retention sums compared to the contract sums are probably not all that material so you can do what you want with them. However if you have the figures in front of you and they ARE material, and are not payable or receivable within the next 12 months, then place them in non-current by all means with a note to the a/cs for a brief explanation.
2007-08-16 03:54:15 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Employment retention, the ability to keep employees within an organization
2016-04-01 16:08:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋