A builder who has taken land from landlord on a condition that after completion of construction 40% flat would be given to the landlord and remaining 60% flats would be sold by builder. Question is that whether above transaction would be covered under AS-7 and how would be profit recognised in the books kindly help me
04 December 2012
AS - 9 would apply. Sales value would be amount received from sale of 60% flats and expenses would be construction cost for 100% of flats.
CAclubindia
