wanted to know when the construction contracts will be covered in AS-7 and when in AS-9
CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9058 Points)
27 March 2009wanted to know when the construction contracts will be covered in AS-7 and when in AS-9
Raman
(Artilcle Assistant )
(57 Points)
Replied 30 April 2009
Hello Ms Devanshi
For accounting of constructon contracts AS 7 is applicable only, & according to AS 7 when the outcome of a construction contract can be measured reliably contract revenue & contract cost associated to such contract should be recognised in the Financial Statements.
So for recognition of revenue from construction contracts AS 7 is there,
AS 9 does not cover the revenue reocgnition from construction contracts
Thanks & Regards
Raman Gora
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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