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Audit and advisory for Construction and Real Estate

Q: How can companies in Construction and Real Estate get a proposal?

Simply share your company and needs via the proposal form; our team, which knows your industry, will send our scope, timeline and fee proposal in writing. Phone: +90 212 951 02 47.

Revenue recognised over time, multi-year contracts and investment property.

Get a proposal +90 212 951 02 47

Financial reporting and audit in Construction and Real Estate companies

In construction and real estate companies, projects span several years, which makes the period and amount in which revenue is recognised the most critical issue in financial reporting. Measuring the stage of completion, updating cost estimates and providing for loss-making contracts rely on significant management estimates.

For real estate developers and investors, what matters is whether homes for sale are classified as inventory and buildings held for rental income as investment property, as well as fair value measurement and financing costs. ARSEN brings its audit and valuation teams together in this area.

Audit focus areas in Construction and Real Estate companies

Revenue recognised over time

Measuring the stage of completion by the cost or physical progress method, contract modifications and accounting for progress billings rely on management estimates and must be tested carefully.

Onerous contracts and cost overruns

Failing to keep cost estimates up to date can delay provisions for loss-making projects and overstate profit.

Accounting–tax differences

For multi-year construction contracts, taxable profit is determined in the year the work is completed, whereas in financial reporting revenue is spread over periods. The difference affects the deferred tax calculation.

Classification of real estate

The same building is inventory if held for sale, investment property if held for rental income and property, plant and equipment if used by the entity. Misclassification changes the measurement method.

Valuation and financing

The valuation of land and projects, land-for-flat agreements, joint ventures and the borrowing costs of project loans are significant items in the financial statements.

Key standards and concepts in this industry

Revenue from contracts with customers (TFRS 15)The standard requiring revenue to be recognised to depict the transfer of goods or services to customers, at the amount the entity expects to be entitled to.Performance obligationA promise in a contract with a customer to transfer a distinct good or service.Investment propertyLand and buildings held to earn rental income, for capital appreciation, or both.Fair valueThe price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.Joint ventureA joint arrangement in which the parties with joint control have rights to the net assets of the arrangement.Provisions (TAS 37)Liabilities of uncertain timing or amount; recognised when there is a present obligation arising from a past event, an outflow of resources is probable and a reliable estimate can be made.Deferred taxTax payable or recoverable in future periods, calculated on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.Contingent liabilityA possible obligation whose existence will be confirmed by uncertain future events, or a present obligation where an outflow of resources is not probable.

Our services for Construction and Real Estate

Audit and Assurance

Independent Audit

An independent auditor's opinion, to international standards, on the financial statements of companies subject to the Turkish Commercial Code, the CMB, the BRSA and the EMRA.

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Valuation

Valuation of businesses, shares and intangible assets; purchase price allocation (PPA) and impairment testing.

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Contract Compliance Assurance

We independently verify that your business partners comply with contract terms and that the figures they report to you are accurate.

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Debt and Capital Advisory

For growth finance, refinancing and restructuring, we work with you to find the right source and the right structure.

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Financial Due Diligence and Modelling

Due diligence and financial modelling that reveal the target company's true profitability, working capital and indebtedness.

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Proposal request

Get a tailored proposal for the Construction and Real Estate industry

Share the scope in a few lines and we will send you our team, timeline and fee proposal in writing. Free of charge and non-binding.

Under founding-partner supervision
Member of the SFAI international network
Written, transparent proposal

or call: +90 212 951 02 47

Frequently asked questions about Construction and Real Estate

When is revenue recognised in construction companies?

Under TFRS 15, if the customer obtains control of the asset as it is built, revenue is recognised over time based on the stage of completion. Otherwise, revenue is recognised when control transfers (for example, on delivery). Which approach applies depends on the terms of the contract.

How is investment property measured?

It is measured at cost on initial recognition; thereafter the entity chooses the cost model or the fair value model. Under the fair value model, changes in value are recognised in profit or loss, generally based on independent valuation reports.

How are off-plan sales accounted for in residential projects?

Advances received from off-plan sales are carried as a contract liability until the revenue recognition conditions are met. Whether revenue is recognised on delivery or over time is assessed according to the contract terms and local law.

How can companies in Construction and Real Estate get a proposal?

Share your company and needs via the proposal form and our team, which knows your industry, will send our scope, timeline and fee proposal in writing. Phone: +90 212 951 02 47.

Last updated: October 22, 2026

Let's talk about this year's audit.

Share the scope and we will send you our team, timeline and fee proposal in writing.

Request a Proposal +90 212 951 02 47