Based on my understanding, the operating process in a property developer starts from: a. Setting up budget to identify potential selling price per unit to achieve favorable profit margin and performing market research on the targeted area b. Once the project is finalized and approved by local authorities, we could start to market out the properties, even though it is at preliminary stage c. Prepare Sales & Purchase Agreement and sign with potential customers through collection of first 10% refundable deposit d. Bill purchasers progressively based on approved architect certificates e. Handover key to purchasers after the project is completed Assuming that we are only selling bare units with no other features provided to our purchasers, explain the five steps approach to recognize revenue for property developers in accordance with IFRS 15 Revenue from contract with customers.
Based on my understanding, the operating process in a property developer starts from:
a. Setting up budget to identify potential selling price per unit to achieve favorable profit margin and performing
b. Once the project is finalized and approved by local authorities, we could start to market out the properties, even though it is at preliminary stage
c. Prepare Sales & Purchase Agreement and sign with potential customers through collection of first 10% refundable deposit
d. Bill purchasers progressively based on approved architect certificates
e. Handover key to purchasers after the project is completed
Assuming that we are only selling bare units with no other features provided to our purchasers, explain the five steps approach to recognize revenue for property developers in accordance with IFRS 15 Revenue from contract with customers.
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