Journal of the Korea Institute of Building Construction (한국건축시공학회지)

The Korean Institute of Building Construction (한국건축시공학회)
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Reliability of Revenue Recognition by Percentage of Completion Method in Construction Industry - Empirical Analysis from Information Perspective

건설업의 공사진행기준에 의한 수익인식의 신뢰성 검증 - 정보적 측면에서의 실증분석

  • Park, Hong-Jo (College of Economics & Business, Daegu University) ;
  • Ji, Hyun-Mi (College of Business Administration, Keimyung University)
  • Received : 2016.07.21
  • Accepted : 2016.09.01
  • Published : 2016.10.20
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Abstract

Construction companies calculate their revenues and costs from constructing activities using the 'Percentage of Completion Method', which is based on ratio of actual construction cost to total costs estimated. The reliability of the net profit of construction companies is being evaluated lower than other industries due to incorrect application of 'Percentage of Completion Method' to cover losses actually occurred. Therefore, the purpose of this study is to verify the quality of earnings calculated based on 'Percentage of Completion Method' in terms of information usefulness. Results from empirical analysis show that investors in stock market underestimate the value of the construction companies' earning information by applying 'Percentage of Completion Method' and not actively use in investment decision making. Accordingly, it has been confirmed that the association between income information and stock prices falling. These results suggest the need for strict supervision of the supervisory authorities and the practical application of 'Percentage of Completion Method' in reliability.

건설회사들이 실제 발생한 공사손실을 감추기 위해 사실과 다른 공사진행률을 적용함에 따라 공사진행기준에 의한 건설업의 순이익이 부정확하다는 평가를 받고 있다. 따라서 본 연구는 공사진행기준을 통해 산출되는 건설업 순이익정보의 질적 수준이 다른 산업에 비해 실제로 낮은 지에 대하여 정보적 유용성 측면에서 검증하였다. 연구 결과 공사진행기준을 적용하여 산출된 건설회사 순이익의 정보적 가치를 낮게 평가하여 투자의사결정에 적극적으로 이용하지 않고 있으며, 순이익정보와 주식가격 사이의 연관성이 떨어지는 것으로 확인되었다. 이러한 결과는 실무적으로 신뢰성 있는 공사진행기준의 적용과 감독기관의 엄정한 관리감독이 필요함을 제시하고 있다.

Keywords

References

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