Whether Percentage Completion Method is mandatory for Proprietor or Partnership business engaged in Construction activity?
In case of Partnership business, site is 90% complete as on 31st March 2013. Can PCM be adopted in F. Y. 2012-2013 as sale of this site has not been booked in any previous years by any other method? Whether adopting this method in current year will result in inconsistency?
31 May 2013
Percentage of completion method as per Accounting standard -7 is applicable for corporate entities. since partnership for you it is not mandatory, but my suggestion is to apply for proper recognition of revenue
How ever you are not adopting and that should be applied consistently
CAclubindia
