REAL ESTATE & CONSTRUCTION

We have a long history of working with clients in the real estate and construction industry and understand the unique challenges faced, including the adoption of the Percentage of Completion (“POC”) Method for long-term construction contracts in accordance with International Accounting Standard 11 (“IAS 11”), the measurement and allocation of work-in-progress for short-term projects, and the restructuring of customer debts. The real estate industry in particular has witnessed considerable changes over the past decade, in line with the exponential growth the UAE has seen. With the general increased demand for real estate and increasing investor appetite in the region, real estate developers, brokers, and service providers, such as facilities management firms have benefited from high growth for their services. With this high growth comes a need to stay abreast of regulatory and technical updates. In particular, the Real Estate Regulatory Authority (“RERA”) based in the UAE has promulgated certain frameworks that companies must abide by. Furthermore, the International Financial Reporting Standards Interpretations Committee (“IFRIC”) has recently issued IFRIC 15, which details the new requirements entities must demonstrate in order to classify the type of sale and the corresponding revenue recognition policy. As a significant component of the economy in the UAE, the real estate and construction industry, we are focused on staying up to date on developments and are able to leverage of local knowledge with our international affiliation with BKR International to assist clients on a worldwide basis.