AS 7 Construction Contracts

accounting standard (AS) 7 [Construction Contracts] and accounting standard (AS) 9 [Revenue Recognition] issued by the ICAI acquire significance. [The Income-tax Act does not prescribe any method of accounting for construction contracts under Section 145. Even accounting standards prescribed under Section 145 does not include any standard on construction contracts. However, as held by the courts from time to time, views of the ICAI as the premier regulatory body for the profession of the accountancy had to be accorded respect.

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