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hello and welcome to your semi f1 financial operations the chapter on construction contracts is 11 which covers construction contracts refers to situations where a contract exists thats very very important and thats the cific contract which has a value at timing agreed between the parties between the construction company in the beneficiary that particular contract should refer to the construction of an asset or a combination of an asset what do we mean by that for instance if you want to build lets say the English Channel just to give you a grand example or if it is to build a railway such projects would need a contract and such projects most likely will straddle more accounting periods so this particular contract would fall under is 11 is 11 does not cover any form of contracts of services so they have to be geared towards constructing an asset or a combination of assets and whats the ultimate spirit and purpose vyas 11 is to make sure we are not recording profits on such contrac
