Currency of material  
This material was last updated when this standard was released in July 2004.  
 
A list of the omnibus amending standards issued up until July 2007 that have affected this standard since this date is included in the following table. The table also contains the date when the relevant changes become operative. 
 
Omnibus amending standards are available on the AASB website as are compiled standards incorporating omnibus amendments as soon as they are completed by the AASB. 
 
Details of the changes made by each omnibus are summarised in ANT and Charter’s “The Panel” as they are released. For a quick overview of the new material applying at 30 June 2007 click here.  

• The substance of a contract or group of contracts must be considered when determining the composition of a construction contract; 
   
  
• Where the outcome of a construction contract can be estimated reliably, contract revenue and contract costs must be recognised by reference to the stage of completion of contract activity (the stage of completion method); 
   
  
• Contract revenue comprises the amount agreed in the initial contract together with variations in contract work, claims, and incentive payments to the extent that it is probable that they will result in revenues and can be measured reliably.  
   
  
• Contract costs comprise costs that relate directly to the specific contract, costs that are attributable to general contract activity and that can be reasonably allocated to the contract, together with such other costs as are directly attributable to the customer under the terms of the contract.  
   
  
• Where the outcome of a construction contract cannot be estimated reliably no profit is recognised., contract costs must be recognised as expenses immediately and contract revenue must be recognised only to the extent that the costs incurred will be recoverable; and 
   
  
• The excess of total contract costs over total contract revenue must be recognised as an expense immediately where it is probable that total contract costs will exceed total contract revenue.