25 March 2009
installation of product takes 6-8 months. the installation is other than incidental to sale of product.
if contracts fall in two different accounting years, whether AS - 7 (percentage completion) or AS -9 (completed contracts) should be applied for recognising revenue and why.
25 March 2009
as-7 is applicable only when contractor contractee relationship is there. just because contract falls in 2 different acc. years AS-7 cannot be applied
i need to know more abt the contract to tell whether AS-7 will apply or AS-9.
26 March 2009
contractor - contractee relationship is there as a contract has been entered .
the company has to install the product which has been supplied by another group company. a separate contract for installation with the company has bben entered which may fall in two different accounting year.
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