AS 7

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Vinod Kumar Mathuria

Vinod Kumar Mathuria (Querist)
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14 May 2010 When revenue to recognise in case of construction contract

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 May 2010 In a construction contract revenue need to recognasie based on the percentage of completion of works

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Querist)
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17 May 2010 is there posibility to recongnise revenue only on completion of contract.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 May 2010 No way. Accounting stanadard 7 issued by ICAI only for the purpose of Recognasing Contract revenue correctly as per the Expenses Vs Revenue Matching concept.you cannot recognasie like that it should be percentage of completion method need to follow

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Querist)
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17 May 2010 wht will the repercussions if revenue is not reconised in the year of completion it self pls. clrearify from income tax point of view.