Construction
Disputed Variation Order — Contingent Revenue
Recording a variation order submitted to the client that is under dispute and not yet approved.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Disputed Claims Receivable (Memo) | Asset (+) | 40,000.00 | - |
| Contingent Revenue (Not Recognized) | Disclosure | - | 40,000.00 |
💡 Accountant's Note
Disputed variations are disclosed but NOT recognized as revenue under IFRS 15 until the constraint on variable consideration is lifted. Premature recognition of disputed amounts is a common audit finding in construction.
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