Doubt in as 7 disclosure point.

Under  AS-7 contract Revene Recognition. the calclation of Percentage of Completion and  application of the same in to the contract revenue is 2  different steps. Percentage of completion arrived based on the total contract value and work done. but the based on the completion we need to apply the percentage and need to deduct the earlier recognised reveune and need to arrive the revenue for the particular reporting period. so there is 2 calculations and both calculaiton need to be disclosed

What Ramesh said that is correct.

I am going to give one example for Revenue Recognition

Contract Value - 100 Rupees

Planned Cost - 80 Rupees and Planned Revenue - 100 Rupees

Jan  Month Cost  - 20 Rupees.

Jan Month Revenue - 20 Rupees

POC = Actual Cost / Palnned Cost

POC = 20 / 80

POC = 25%

Actual Revenue is 20 Rupees. But As per the POC Method revenue should be 25 Rupees.

Difference Amount also we need consider as revenue (25 - 20 ) = 05.

So'We need to Recognition the Revenue as per the POC Method (100X25%)=25