Abstract
M.Com. (International Accounting)
Various organisations continue to undertake mega infrastructure development projects to address the infrastructure development challenges of South Africa. The cost components of these projects are complex and often result in reporting entities having to make significant management judgements on the financial reporting thereof. The study represents a technical report assessing the accounting treatment of key costing areas within these projects with a view of identifying areas of consistency and divergence in practice. The study follows a doctrinal research approach of comprehensively reviewing the available literature supplemented by interviews with senior personnel of the "big four" accounting firms. The study reveals that whilst there are consistent views among the four respondents from the "big four" accounting firms on the accounting treatment on development costs and corporate social investment costs, divergent views exist pertaining to compensation events costs, suspension of capitalisation as well as the impact of a project contracting strategy on overall accounting treatment. It is, therefore, recommended that the IASB provide further guidance on these diverged issues to ensure consistency in practice.