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ACCOUNTING AND TAX TREATMENT OF INCOME FROM ORDINARY ACTIVITIES FROM CONSTRUCTION CONTRACTS WITH CUSTOMERS

Abstract:

IFRS 15 establishes guidelines for the recognition of revenue related to contracts with customers based on performance obligations with the customer. Consequently, the application of the standard affects the entity’s income and, consequently, produces changes in the taxable income for the calculation of income tax. The objective of this study is to design a procedure for the evaluation and use of IFRS 15 in the Company S.A. and its impact on the income tax calculation. The main results of the study show that the company is not recognizing income from contracts under the terms stipulated by current regulations and the tax effects on income tax on the recognition of income from construction contracts derived from the same.