What Are The Contents Of The Contract Revenue?
The contract revenue includes the initial income stipulated in the contract and the two part of the income resulting from contract alteration, claim, award and so on.
One contract The initial income, that is, the total amount of the contract agreed between the contractor and the client in the contract signed between the two parties, constitutes the basic content of the contract revenue.
2. income arising from changes in contracts, claims and awards.
This part of revenue does not constitute the total amount of the contract agreed upon by the two parties when signing the contract, but the income generated during the execution of the contract due to reasons such as contract alteration, claim, award and so on.
Construction contractors are not allowed to identify these revenues arbitrarily, and only when they meet the prescribed conditions can they constitute the total revenue of the contract.
Contract change refers to the adjustment made by the customer to change the contents of the contract.
The income increased due to the change of contract shall be confirmed at the same time conforming to the following conditions:
(1) customers can recognize the increased revenue due to change.
(2) income can be reliably.
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Claim indemnity is a sum of money paid by a construction contractor to the client or third party for the compensation of the cost not included in the contract cost due to the reasons of the customer or third party.
The income derived from the claim is the claim income, which should be confirmed at the same time conforming to the following conditions:
(1) according to the negotiation, the other party is expected to agree to this claim.
(2) the amount agreed upon by the other party can be measured reliably.
Incentive payment refers to the additional payment that the client agrees to pay to the construction contractor when the project reaches or exceeds the stipulated standard.
The income derived from the award shall be recognized at the same time conforming to the following conditions:
(1) according to the current contract complete The situation is to achieve or exceed the established standard by judging the progress of the project and the quality of the project.
(2) the reward amount can be measured reliably.
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