Revitalisation of a historic building through performance evaluative research into workplace environmental conditions : research article

The standard and generally accepted guideline for the accounting treatment of revenue and costs associated with construction contracts is AC109/IAS11: Construction Contracts, which recognises that contract start and end dates usually fall into different accounting periods. This causes the problem that forms the primary focus of this article, namely: the allocation of contract revenue and costs to the accounting periods in which construction work is performed. Critical to the above allocation is the ability to determine percentage of completion of contract and cost to completion at the balance sheet date (reporting date). The important activities in this regard according to AC109/IAS11 are to "measure" and "estimate" reliably. AC109/IAS11 contains detailed guidelines on how these aspects should be dealt with. However, questions arise as to who the relevant role players are and how these actions should be performed. It seems obvious that the guidelines used for determining the stage of completion should correspond with the guidelines for on site cost control. AC109/IAS11 gives guidance by stating clearly that the provisions of the statement should be read in conjunction with AC000/Framework: Framework for the preparation and presentation of financial statements. South African literature on the subject is limited to textbooks with detailed guidelines to assist accounting students and qualified accountants. No other discussions or guidelines could be found that are directed at the built environment professionals in general, or the contractor in particular, regarding the topic of recognition of cost according to formal accounting guidelines. The research on which the article is based, attempted to obtain clarification on key aspects from the experts on the subject, namely the registered auditors and accountants of contractors. The results of the survey indicated that they interpret AC109/IAS11 to require no other skills than general accounting abilities. It also showed that certain important terms and activities described in AC109/IAS11 are interpreted in ways that differ from how built environment professionals would interpret the same terms. From the study it became apparent that problems in construction accounting and reporting could arise due to the fact that certain guidelines and terms in AC109/IAS11 are not consistently interpreted by all involved. These apparent ambiguities will influence the recognition of costs in different phases of completion of a construction contract. Die standaard en algemeen aanvaarde riglyn vir die rekeningkundige verantwoording van inkomste en koste wat met konstruksiekontrakte verband hou, is RE109/IAS11: Konstruksiekontrakte, wat erkenning gee aan die feit dat kontrakbedrywighede begin en afgehandel word in verskillende rekenpligtige tydperke. Dit gee aanleiding tot die primere fokus van hierdie artikel: die toedeling van konstruksieinkomste en konstruksiekoste aan die rekenpligtige tydperke waarin die konstruksiewerk verrig word. 'n Kritiese aspek tot bogemelde toedeling is die vermoe om die persentasie van voltooing van die kontrak en koste tot voltooing daarop te bepaal op die balansstaatdatum (verslagdoeningsdatum). Die belangrike aktiwiteite in die geval, volgens RE109/IAS11,, is om betroubaar te "meet" en te "beraam". RE109/IAS11 bevat gedetaileerde riglyne vir die hantering van bogemelde aspekte. Die vraag wat egter ontstaan het is wie moet wat doen en hoe dit gedoen moet word. Dit het geblyk ooglopend te wees dat die riglyne vir die bepaling van die stadium van voltooiing sou ooreenstem met riglyne wat sou geld vir die beheer van kostes op terrein. RE109/IAS11 verskaf riglyne deur dit onomwonde te stel dat die bepalings van die standpunt saam gelees moet word met RE000/Raamwerk: Raamwerk vir die Opstel en Aanbieding van Finansiele State. Suid-Afrikaanse literatuur oor die onderwerp is beperk tot handboeke wat gedetaileerde riglyne bevat om hulp te verleen aan rekeningkunde studente en gekwalifiseerde rekenmeesters, maar geen ander besprekings of riglyne kon opgespoor word wat gerig is op professionele persone in die bouomgewing in die algemeen, of spesifiek op die kontrakteur, ten opsigte van die onderwerp van erkenning van kostes ingevolge formele rekeningkundige riglyne, nie. Die navorsing waarop die artikel gebaseer is, poog om duidelikheid te bekom rondom sleutelaspekte vanaf die kenners op die gebied, naamlik die geregistreerde ouditeure en rekenmeesters van kontrakteurs. Die resultate van die opname toon dat hulle RE109/IAS11 interpreteer dat daar niks meer as algemene rekenmeesters vermoens van hulle vereis word nie. Dit het ook aangetoon dat hulle sekere belangrike terme en aktiwiteite verduidelik in RE109/IAS11 verskillend geinterpreteer as wat professionele persone in die bou omgewing dit sou doen. Dit blyk daarom vanuit die navorsing dat probleme in konstruksierekeningkundeen -verslagdoening mag ontstaan weens die feit dat sekere riglyne en terme inRE109/IAS11 nie konsekwent geinterpreteer word deur die betrokke rolspelers. Dieooglopende onsekerhede beinvloed die erkenning van koste in die verskillende fases van voltooiing van 'n konstruksiekontrak.