Accounting treatment of work done but not certified

Prashant Poojary (Sr. Accountant) (25 Points)

20 April 2015  

Dear All,

Greetings,

My query is in relation to Accounting treatment of Value of Work done but not certified, details as follows:

An entity is constructing a Building (as Investment Property) through contractor. Only 30% of construction is completed as at Balance Sheet date i.e. 31/3/15, hence said item is shown as 'Capital WIP' in its books.

On 15/4/15 Construction Contractor submits his bill for March'15 and same is certified by Engineer on 18/4/15. Please advise regarding accounting treatment of work done during March'15 but not certified as at 31/3/15.

Thank you in advance.

Best Regards,

Prashant