Under AS-7 is not a recognised method of recognising the revenue

Under AS-7, this is not a recognised method of recognising the revenue. This method is neither project completion method nor percentage of completion method. Registration of the sale deed represents only the transfer of the title in favour of the buyer from the assessee. It has nothing to do with the method of accounting followed by the assessee.Under the percentage of completion method,revenue is recognised in the profit and loss account in the accounting period, to the extent the work is completed. In case the revenue has to be recognised on the basis of receipt of the payment from the plot-holders, that will also not be regarded to be percentage of completion method.


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