Ehituselkäib

Ehituselkäib is a term used in the Estonian construction industry to describe the value of construction work performed and recognised as revenue during a specific reporting period. It reflects the turnover generated from construction contracts and is often used for project accounting, financial reporting, and performance measurement. The term may include the value of completed work on contracts, revenue recognised for work in progress, and adjustments arising from contract variations, changes orders, and penalties that are recognised as revenue under applicable accounting standards.

Revenue recognition for ehituselkäib commonly follows the percentage-of-completion method for long-term contracts, where the contract price is multiplied by the share of work completed. In other situations, revenue may be recognised when specific milestones are reached or when control over the work transfers to the client. Invoicing typically aligns with progress, with variations and change orders increasing or decreasing the recognised ehituselkäib accordingly. Retentions held by clients reduce current revenue and may be recognised later once conditions are satisfied.

In financial reporting, ehituselkäib is presented as revenue from construction contracts. Depending on the accounting framework (Estonian GAAP or IFRS), there may be separate disclosures for contract assets and contract liabilities related to work-in-progress, as well as notes on significant variances or estimates.

Relation to taxation, including value-added tax (VAT), depends on national rules; progress billings can influence the timing of VAT charges, but tax treatment varies by jurisdiction and contract specifics.

See also: work in progress, progress billing, construction contract, percentage-of-completion method.