Ind AS 11
Withdrawn
Construction Contracts
Historical standard governing construction contract revenue via the percentage-of-completion method, converged with IAS 11 and now withdrawn and superseded by Ind AS 115.
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Conceptual Framework Linkage (Historical)
Identical percentage-of-completion philosophy to IAS 11
Ind AS 11 applied the IDENTICAL principle as IAS 11 – construction contract revenue/costs were recognised by reference to the STAGE OF COMPLETION of contract activity at the reporting date, when outcome could be estimated reliably.
HOW IND AS 11 MAPPED TO THE FRAMEWORK (HISTORICAL)
Relevance – recognising revenue as construction activity progresses, rather than only at final completion – identical rationale to IAS 11 Matching – costs matched against revenue recognised in the same period – identical to IAS 11
Both Ind AS 11 and IAS 11 were REPLACED by their respective single revenue standards (Ind AS 115 / IFRS 15), which introduced a more rigorous CONTROL-based over-time recognition test in place of this dedicated construction contracts standard.
Now superseded by Ind AS 115's over-time recognition test
Ind AS 11 is NO LONGER APPLICABLE. Construction/EPC contract revenue is now recognised under Ind AS 115's five-step model, using its over-time vs point-in-time criteria (see the Ind AS 115 poster, Section 6).
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Scope & Applicability (Historical)
What Ind AS 11 covered
Ind AS 11 applied to contracts specifically negotiated for the construction of an asset or combination of assets – IDENTICAL historical scope to IAS 11.
Genuinely significant historically for Indian EPC, infrastructure, and real estate companies.
Key definitions (historical)
Percentage-of-completion method
IDENTICAL definition to IAS 11 – recognising revenue/costs by reference to stage of completion.
Fixed price contract
A contract type historically covered by Ind AS 11, now assessed under Ind AS 115.
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The Percentage-of-Completion Method (Historical)
Identical to IAS 11
Stage of completion was determined by methods such as the proportion of costs incurred to date over estimated total costs, surveys of work performed, or physical completion of contract work – IDENTICAL to IAS 11.
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Contract Revenue & Costs (Historical)
Identical measurement to IAS 11
Example 1: Historical percentage-of-completion calculation
An Indian EPC contractor's highway project had a total contract value of ₹100 crore, with ₹40 crore of costs incurred against total estimated costs of ₹80 crore.
Under the OLD Ind AS 11 methodology, stage of completion was 50% (₹40cr ÷ ₹80cr), so ₹50 crore of revenue (50% × ₹100cr) would have been recognised – an IDENTICAL calculation methodology to how IAS 11 was historically applied globally. This methodology is NO LONGER USED – Ind AS 115's over-time criteria now govern this determination.
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Recognition of Expected Losses (Historical)
Identical to IAS 11
The ENTIRE expected loss on a contract was recognised IMMEDIATELY once foreseeable, regardless of stage of completion – IDENTICAL to IAS 11's own prudent, immediate loss recognition principle.
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Combining & Segmenting Contracts (Historical)
Identical to IAS 11
Criteria for combining a group of contracts as one, or segmenting a single contract into separately identifiable assets, were IDENTICAL to IAS 11 – a concept that has evolved into Ind AS 115's own performance obligation identification.
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Transition Impact for Indian EPC/Real Estate Companies
A genuinely important historical Indian transition event
India's LARGE EPC/infrastructure and real estate development sectors experienced a SIGNIFICANT transition impact moving from Ind AS 11's percentage-of-completion approach to Ind AS 115's stricter control-based over-time criteria – particularly for real estate developers, where the shift from an assumed "continuous transfer" model to Ind AS 115's more rigorous three-criteria test (see Ind AS 115 poster, Section 6) sometimes shifted revenue recognition from OVER TIME to POINT IN TIME (at possession/registration), materially altering reported revenue timing for many Indian developers.
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Why It Was Withdrawn
Convergence with the single global revenue standard
Ind AS 11 (like IAS 11) was withdrawn as part of the broader move to a SINGLE, principles-based revenue recognition standard (Ind AS 115/IFRS 15) applicable across ALL industries, replacing the prior patchwork of industry/contract-type-specific standards.
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Disclosure Requirements (Historical)
Historical disclosure requirements, identical to IAS 11
Contract revenue recognised in the period Methods used to determine stage of completion Amounts due from/to customers for contract work
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Critical Judgments & Estimates (Historical)
Where management judgement historically mattered most
SIGNIFICANT JUDGEMENTS
Whether contract outcome could be estimated reliably Contract combining/segmenting determinations
SIGNIFICANT ESTIMATES
Total estimated contract costs, driving the stage-of-completion calculation
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Ind AS 11 vs IAS 11 – Full Comparison
Comprehensive comparison table
FeatureIAS 11Ind AS 11
Core methodology (historical)Percentage-of-completionIDENTICAL – no substantive divergence
Withdrawal/replacementReplaced by IFRS 15Replaced by Ind AS 115, on an aligned transition timeline
Ind AS 11 was essentially IDENTICAL to IAS 11 throughout its life – both standards were withdrawn in favour of their respective single revenue standards.
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Statement Mapping (Historical)
Where Ind AS 11 items historically appeared
ItemStatement(s) affectedNotes
Contract revenue recognisedP&LNow governed by Ind AS 115
Amounts due from/to customersBalance SheetNow presented as contract assets/liabilities under Ind AS 115
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Related Standards
Cross-reference map
StandardConnection
IAS 11The global counterpart standard, also withdrawn on an aligned timeline
Ind AS 115The CURRENT standard governing all revenue, including former Ind AS 11 construction contracts
Ind AS 18 (withdrawn)The other predecessor revenue standard, also replaced by Ind AS 115
Quick-reference glossary
Stage of completion
The historical Ind AS 11 metric for revenue recognition, now superseded by Ind AS 115's control-based over-time assessment.
EPC contract
Engineering, Procurement, Construction – a common Indian contract type historically governed by Ind AS 11.
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Quick-Reference Glossary
Percentage-of-completion method
The historical method of recognising construction contract revenue/costs by reference to the stage of completion – identical to IAS 11.
Stage of completion
The historical Ind AS 11 metric for revenue recognition, now superseded by Ind AS 115's control-based over-time assessment.
EPC contract
Engineering, Procurement, Construction – a common Indian contract type historically governed by Ind AS 11.
Fixed price contract
A contract type historically covered by Ind AS 11, now assessed under Ind AS 115.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows