Taiwan Clarifies Accounting of Construction Project Revenue

Taiwan's Ministry of Finance has issued a notice to clarify the accounting of construction project revenue. The notice clarifies that companies must use the accrual basis of accounting to recognize revenue from contracted projects in the year of actual completion and delivery, regardless of when payment is received. For building construction, completion is defined by the date the competent authority issues a usage permit. For non-building projects, completion is defined by the date of the cl…