IntroductionRevenue recognition for the construction industry is a complex area, now IASB and FASB are trying to come up with a new comprehensive accounting standard for revenue recognition. Before issuing the new standard, it is in our client's best interest to understand the current standards and development issues for revenue recognition. This article will initially introduce how revenue is currently recognized in the construction industry. Secondly, the process of developing new standards will be discussed. In the third part of this article we will explain why developing the new standard is difficult and time-consuming. Ultimately, it will take into account the latest exposure draft published by IFRS and past revisions to create a future perspective on some of the benefits the new standard will bring to the construction contract. Current revenue recognition in the construction industry If the outcome of the construction contract can be reliably estimated, then at the end of each reporting period the related revenue should be recognized based on the level of completion of the contract and whether the outcome does not can be reliably judged, what revenue would be recognized would only 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 a combination of assets which are closely related or interdependent in terms of their design, technology and function or their ultimate purpose or use' (IFRS, IAS11 construction contract, 2012). IAS 18 is the standard for revenue recognition, which involved the service contract (Mckeith and Collins, 2013). But it is difficult to apply it in some industries such as construction. Since the construction contract will take many years to complete on...... middle of paper ......mmittee Due Process Handbook.IFRS. (01/01/2012). IAS 11 Construction worksIFRS. (no date provided). How we develop IFRS. http://www.ifrs.org/how-we-develop-standards/Pages/how-we-develop-standards.aspx. Seen on 30/11/2012.IFRS. (no date provided). Revenue recognition. http://www.ifrs.org/Current-Projects/IASB-Projects/Revenue-Recognition/Pages/Revenue-Recognition.aspx#. Viewed 06/11/2013.McKeith, J., & 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. (25/11/2013). Dataline A look at current financial reporting issues. No.2013-23 http://www.pwc.com/en_US/us/cfodirect/assets/pdf/dataline/dl-2013-23-boards-revenue-redeliberations.pdf (Evaluated 10/12/2013).