revenue recognition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2009 when is revenue recognised in a construction company? is it after completion of construction or as and when the expenditure is made? pls help me out.its urgent.

Heera Nahariya

Heera Nahariya (Expert)
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25 December 2009 go through AS - 7

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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25 December 2009 Percentage of certified work completed is the method of recognition of income.

If work completed and certified is less than 25% then no revenues are accounted for and all the work is shown as Work In Progress.

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