The Legal Framework For Long-Term (Construction) Contracts In The Algerian Accounting And Financial System From The Perspective Of The International Accounting Reference. A Comparative Study With Ifrs 15
Main Article Content
Abstract
The purpose of this study is to present the content of Regulation 203 of the Algerian Accounting and Financial System, specific to the accounting of the construction and irrigation sectors, and to compare it with the requirements of International Financial Reporting Standard 15 “Revenue from Contracts with Customers”.
Algeria, through the adoption of the International Accounting Reference with the issuance of the Accounting and Financial System in 2007 and its effective application in 2010, has addressed the specific operations of the construction sector, classified as construction or works contracts, based on the content of the International Accounting Standards IAS 11 “Construction Contracts” and IAS 18 “Revenue” and their interpretations, which were replaced by the International Financial Reporting Standard IFRS 15 “Revenue from Contracts with Customers” in 2018, leading to the issuance of Regulation 203, which complements the Algerian accounting and financial system in 2023 for its application in 2024 in line with the requirements of the new standard.
The study adopted the deductive method, which is a deductive process, as the study started from a generally accepted theory to conclude it in a specific framework, where the tool of description is the theoretical aspects of the IFRS15 standard and Regulation “203”, and the tool of comparative analysis between them was also used.
The study concludes with elements of similarity and others of dissimilarity, which reveals the inconsistency of Regulation 203 with the content of the IFRS15 standard.
The importance and novelty of the subject for the Algerian accounting legislative environment justify the conclusions of non-compliance, which requires the updating of the Algerian accounting and financial system and its greater adaptation to the international accounting environment.