IntroductionRevenue recognition for the construction industry is a complex area. The IASB and FASB are now attempting to develop a comprehensive new accounting standard for revenue recognition. Before publishing the new standard, it is in our client's interest to be aware of current standardization and development issues in revenue recognition. This article will first present how revenues are currently recognized in the construction sector. Second, the process of developing new standards will be discussed. In the third part of this article, we will demonstrate why it is difficult and time-consuming to develop a new standard. Ultimately, it will review the latest exposure draft issued by IFRS and past reversions to establish a future perspective on some benefits the new standard will bring to the construction contract. Current revenue recognition in the construction sector If the outcome of the construction contract can be reliably estimated, then at the end of each reporting period, related revenue should be recognized based on the level of contract completion and if the outcome cannot be judged reliably, what revenue would be recognized solely to cover the cost of the contract (IFRS, 2012). The definition of a construction contract is “a specifically negotiated contract for the construction of an asset or combination of assets that are closely related or interdependent in terms of design, technology and function or their purpose or ultimate use” (IFRS, IAS11, construction contract). , 2012).IAS 18 is the revenue recognition standard, which involved the service contract (Mckeith and Collins, 2013). But it is difficult to apply it in certain sectors such as construction. Because the construction contract will take many years to complete middle of paper...... committee Due Process Handbook.IFRS. (01/01/2012). IAS 11 Construction contractIFRS. (no date communicated). How we develop IFRS. http://www.ifrs.org/how-we-develop-standards/Pages/how-we-develop-standards.aspx. Accessed 11/30/2012.IFRS. (no date communicated). Income recognition. http://www.ifrs.org/Current-Projects/IASB-Projects/Revenue-Recognition/Pages/Revenue-Recognition.aspx#. Accessed 06/11/2013. McKeith, J. and Collins, B. (2013). Financial Accounting and Reporting (Second Edition). London: McGraw-Hill Education (UK) Limited. Melville, A. (2011). International Financial Reporting, a practical guide (third edition). Essex: Pearson Education Limited.PWC. (11/25/2013). Dataline A look at current issues in financial reporting. No.2013-23 http://www.pwc.com/en_US/us/cfodirect/assets/pdf/dataline/dl-2013-23-boards-revenue-redeliberations.pdf (assessment 10/12/2013).