22 May 2009
Dear Friends, Our company is Project Based Company. We have taken a project. We have given the whole contact to a sub contractor. we have issued a Sale Bill of Rs. 6 Crore on our client. The sub contractor has issued a bill of Rs. 7 Crore for the same project. Can we book the whole Rs. 7 Crore Exp in the F Y 2008-09 or shoule we defer Rs. 1 Crore to next F Y? The Project will be completed in the F Y 2010-11 & we are expecting overall profit from this.
22 May 2009
As per AS-7 construction contracts you have to recognise the profit based on percentage completion method, actual receipts and payments does not have any implications
CAclubindia
