Construction

Contractual Claim Revenue Accrual

Accruing revenue for a claim submitted to the client for additional costs caused by employer-risk events (e.g., design changes, delays).

Account NameTypeDebit ($)Credit ($)
Claims ReceivableAsset (+)85,000.00-
Contract Revenue (Claims)Revenue (+)-85,000.00

💡 Accountant's Note

Under IFRS 15, claim revenue is recognized only when it is highly probable it will not be reversed. Claims must be formally submitted, supported by cost evidence, and the client must have acknowledged liability or the contract terms must support the claim.

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