Revenue and Cost of sales recognition of Real estate company

[Al-Mahamud]

Let, a real estate company buy and sell land. My question is what the company should do regarding its revenue expenditure? Should the company capitalize its revenue expenditure and charge them against revenue when the control of the land is transferred to the customer or charge the administrative expenses in the current year and capitalize the directly attributable cost of land and charge them when revenue will be recognized?

Furthermore, I have confusion regarding the revenue and cost of sales recognition method applied to the Construction companies I.e. developer

[JRSB]

Sounds like the land is inventory for a short period so follow the IAS2 rules on capitalising costs and expense the rest.

[Marek Muc]

... which means you should follow this guidance
https://ifrscommunity.com/knowledge-bas ... ventories/