Construction agreements with the implementation of TAS-11

Construction works especially the contract progress works are are differentiated from the other works. Because of this situation the accounting practice of construction works are different from the other accounting practices. The main reason of why the contract progress works are important is that the beginning and the end of the work would not be in the same calendar year.According to the income tax law the income and the cost of the contract progress should be postponed to the end of the contract progress. But, this appoach is contravened to the fundemental principles of accounting. For resolving this contradiction and also for attuned to the International Financial Reporting Standards the TMS-11-Constraction Contracts Standard entered into force. The main issue of this study is to explain the TMS-11 and its applications.