News: Big Relief for Philippine Real Estate Developers
Thursday, December 18th, 2008A new global accounting reporting system called IFRIC 15 (International Financial Reporting Interpretations Committee) has threatened to hamper Philippine Real Estate developers by using new accounting rules to realize income from property sales. Under IFRIC 15, which the Philippines agreed to comply with, Filipino developers must only recognize revenues from pre-selling activities once the project is completed.
Since pre-selling is very common in the world of Real Estate Philippines, this would force all Philippine builders to report losses instead of profits starting this coming January of 2009! And what’s even more damaging is that IFRIC 15 should have a retroactive application even to the previous financial statements of the past year!
