Semi-finished work at a construction contractor as of December 31st.
June 18, 2010 | 15,00 EUR | answered by Matthias Wander
How do I determine the unfinished work of a construction contractor on someone else's property? The contractor only has subcontractors and no machinery, etc. Could I get an example with numbers?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment within a first consultation.
The incomplete works are to be capitalized with the costs incurred up to the balance sheet date. Any profits are not taken into account.
Example 1:
For a construction project (Duration: 01.09.-31.03.09) costs of 80,000 euros (subcontractors, materials, employees) have been incurred up to the balance sheet date (31.12.09).
The incomplete works amount to 80,000 euros.
Since it is not always possible to determine the actual costs, the value can also be determined based on the calculation.
Example 2:
Revenue: 200,000 euros
Less profit: 20,000 euros
Costs: 180,000 euros
Construction progress on the balance sheet date: 60%
Incomplete works: 108,000 euros (180,000 x 60%)
I hope this gives you a first overview.
Best regards,
Wander
Tax consultant
... Are you also interested in this question? 
