자체분양공사 수익인식기준에 따른 재무제표 정보의 가치관련성 비교

This paper examines the relative value relevance of the alternative accounting method for revenue recognition principle(percentage of completion method, completed contract method) for off-plan sales in Korean construction. Under K-IFRS, accounting method for revenue recognition principle for off-Plan sales is controversial because of differing views as to what ‘transfer of control occurs on a continuing basis’ means and how it should be applied in practice. The KASB(Korea Accounting Standards Board) concluded that revenue from off-plan sales should be recognised by reference to the stage of completion of the transaction using the percentage of completion method. However, accounting method for revenue recognition principle for off-Plan sales is still a matter of debate as IASB is planning to publish a revised new revenue recognition standards. This paper examines the relative value relevance of financial statements applying different revenue recognition to suggest a criteria for revenue recognition principle empirically. Using financial statement of listed construction companies for the period from 2006 to 2010, this paper shows that accounting information(book value of equity, net income) applying percentage-of-completion method is superior to the accounting information applying completed-contract method, suggesting that financial statements applying percentage-of-completion method represent more useful information than one applying completed-contract method. Thus, it is desirable to suggest a guidance on decision of revenue recognition standard to authorities, construction industry as well as academics at this time despite of long-lasting revenue recognition controversy.