진행기준에 의한 회계처리 : (주)현대중공업의 사례

초록

This case study discusses the specific accounting standards (i.e., percentage of completion method) applied to shipbuilding and construction industries, which are conveniently called order-based industries. It first investigates the causes for the extreme operating losses that Hyundai Heavy Industry. Co. recognized in 2014 and 2015. Hyundai Heavy Industry Co., one of the most successful shipbuilding firms in Korea, enters marine plant industry in response to plummeting demand for shipbuilding after the 2008 Financial Crisis. However, lack of designing and construction capabilities and principals’ frequent request for revision of design led contract costs to surge significantly, while contract revenues were set low and fixed due to intense price-competition. Consequently, marine plant projects incurred huge losses. The losses recorded in 2014 and 2015 are partly due to K-IFRS 1011 Construction Contract, which mandates that the expected future losses be recognized as expense immediately. This case study aims to help students understand how the percentage of completion method applied to order-based industries (such as shipbuilding and construction) can affect the financial performance of firms belonging to the industries. It also discusses how the adoption of a new accounting standard, K-IFRS 1115, has effects on accounting practice in the industries. In doing so, it may be able to enhance proper understanding of accounting information produced under the percentage of completion method for the outside users of the financial statements.

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