Guidelines for calculation for construction WIP

I am doing an audit of Construction company.. There is only 1 project (township) going on currently. Is there any guideline for valuation of Construction WIP as on 31.03. Booking collections received have to be treated as advances under current liabilities. Also AS 7 is not applicable. Also please guide me about treatment of borrowing costs under AS 16.

Thanks in Advance

Dear Sir,

Pls. let me know how to calculate the WIP of a construction co. as per AS 7 with an illustration. And how to pass the necessary entry in books of accounts.

There is a guidance note on accouting for real estate transactions. You can refer to that. Please find the attachment in this regard.