AS-7 Construction Contracts

The Guidance Note draws upon the principles enunciated in AS-7, Construction Contracts,
wherever percentage completion method is appropriate (as most of the real estate transactions and activities have the same economic substance as construction contracts), whereas, in respect of transactions of real estate which are in substance similar to delivery of goods, principles enunciated in accounting standard (AS) 9, Revenue Recognition, are applied.Hon’ble ITAT Bangalore in Prestige Estate Projects confirmed the principle of revenue recognition laid by the Guidance Note on Recognition of Revenue by Real Estate Developers issued by ICAI and decided accordingly.


Comments

Post a Comment

Popular posts from this blog

Valuation of Assets and liabilities

Image
Valuation of Assets and liabilities AS–14 requires valuation at carrying value in the case of pooling method. In the case of purchase method either carrying value or fair value may be used. Contingent liabilities are not fair valued. Under AS–21, AS–23, and AS–28, goodwill is determined based on book values rather than fair values. Ind AS 103 requires the acquired identifiable assets, liabilities and non-controlling interest to be recognised at fair value under acquisition method.Even contingent liabilities are fair valued.
Read more

Gujarat Secondary and Higher Secondary Education Board

Image
The Gujarat Secondary and Higher Secondary Education Board (GSHSEB) was constituted in 1972, following the enactment of the Gujarat Secondary Education Act 1972. Its Chairman and Deputy Chairman are appointed by the State Government. It has 16 ex officio members, and 44 other members drawn from academic organizations, legislative bodies and civil society. Various Committees with specific responsibilities function under the Board, such as the Executive Committee, Examination Committee, Finance Committee, Education Committee, and Magazine Advisory Committee.
Read more