Revenue recognition.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2013 Construction project started 2 yrs back.Few Bookings were also done in two years.I was following Project Completion Method for last two years.
But now as per AS 7-Mandatory application of the Percentage of Completion Method(POC).
So now how shooud I account for it??How and when should I recognize revenue?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 June 2013 For long term construction contract for revenue recognition under AS-7 is mandatory, you can calculate from current year the same and book the revenue accordingly