Abu Dhabi’s Aldar Properties PJSC, a property development, investment and management company, recently changed its accounting policies, which will apply to its 2015 Financial Statements.
Following a detailed review of IFRS 15, the company’s board decided to adopt the new standards retroactive from Jan. 1 of this year. This decision may alter the profile of revenue and profit recognition for the company.
The most important change expected is related to the timing of revenue recognition from off-plan developments. Currently, its revenues are recognized upon delivery of a completed unit. The new standards will recognize revenues over time up to the point of completion based on the terms of contracts.
The H1 2015 Financial Statements for Aldar Properties will reflect the full adoption of IFRS 15.
