Implementation of the accounting standard IAS 11 in the construction sector in Albania
Msc. Aurora Hoxha, Prof. Dr. Flutura Kalemi
Fakulteti i Ekonomisë dhe Agrobiznesit, UBT
Financial management, accounting and the recognition of contracts in construction is now considered as unique and professional work due to their recognition by the IASB (International Accounting Standards Board) through IAS 11 (International Accounting Standard).
IAS 11 specifically deals with Construction Contracts. This standard sets out the way of accounting transactions in the Construction Sector by the accounting economists and financiers. It serves as a basis for their calculations in the situationalization of work by constructors.
This research aims to describe the process of construction in Albania, the participants of this process through contracts and the relation between them. The evaluation of revenues and costs has been considered of great importance. This study introduces all the methods used nowadays in calculating construction costs, thus giving importance to the method of physical measurement which is the most widespread among private construction contracts, and that of work percentage which is more applicable in cases of tendering work.