Abstract
The study aims to demonstrate the degree to which contracting companies in Kuwait comply with the requirements of IAS 11 in terms of applying accounting disclosure requirements and applying the requirements for recognition of revenues and expenses of construction contracts. The study group consists of Kuwaiti contracting companies in the first category. The sample of the study consisted of accountants and internal auditors in contracting companies. The contracting companies in the State of Kuwait apply the requirements of accounting disclosure for construction contracts in accordance with the requirements of International Standard No. 11, and the contracting companies in the State of Kuwait apply the requirements for recognition of the revenues and expenses of construction contracts in accordance with the requirements of International Standard No. 11. The most recommendations: The necessity of contracting companies in the State of Kuwait to disclose the methods used to determine the level of completion of construction contracts under implementation, which helps in the application of full disclosure of construction contracts in addition to the possibility of integration of information elements of the financial statements. And the contracting companies to disclose the total amounts due to customers for the work of construction contracts as an asset within assets.
Highlights
The project of establishing a contracting company specialized in architectural construction is one of the projects that need sufficient capital to manage the project, organize suitable labor, and need some equipment for it
In determining the revenues of construction contracts that have been included in the revenues of the accounting period
The contracting companies in the State of Kuwait is based on the loading of the accounting period revenues and costs of construction contracts within the accounting period, and this shows that the income statement includes and honestly the costs and revenues of construction contracts for contracts that were completed during the accounting period
Summary
The project of establishing a contracting company specialized in architectural construction is one of the projects that need sufficient capital to manage the project, organize suitable labor, and need some equipment for it. A contracting company is a company specialized in construction, construction and finishing on demand through workers, civil engineers, management engineers, maintenance and other fields It depends on the organization and implementation of various projects, from large contracting companies or small companies. The State of Kuwait is one of the countries that carried out large-scale contracting and construction projects with the aim of developing infrastructure and providing public projects for various groups of society. This leads to the necessity of knowing the stakeholders to benefit from these projects and to ensure their social, financial and accounting accuracy. This study aims at determining the degree of application of the accounting requirements according to international accounting standards in the contracting companies in terms of accounting disclosure requirements and in terms of recognition of the costs of construction contracts and revenues
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