20 May 2011
Accounting Standard 7 is applicable in Construction Contracts (revised 2002), issuedby the Council of the Institute of Chartered Accountants of India, comes intoeffect in respect of all contracts entered into during accountingperiods commencing on or after 1-4-2003 and is mandatory in nature2from that date. Accordingly, Accounting Standard (AS) 7, ‘Accounting forConstruction Contracts’, issued by the Institute in December 1983, is notapplicable in respect of such contracts. Early application of thisStandard is, however, encouraged.
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