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AS-7 or AS-9

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)

27 March 2009

wanted to know when the construction contracts will be covered in AS-7 and when in AS-9

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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