About the reserves
This query is : Resolved
07 November 2011
sir when in contract accounting, when the contract is not fully complete,then potion is crefited to P and L and other to reserves. How will be that reserve treated in future?
CA Jeen paul
(Expert)
08 November 2011
PRIMARY OBJECTIVE OF THE AS7 CONSTRUCTION CONTRACTS (REVISED) ISSUED BY ICAI IS THE ALLOCATION OF "CONTRACT REVENUE" AND CONTRACT COST AND ARRIVE AT THE PROFIT & LOSS FOR THE ACCOUNTING PERIOD OF THE ENTITY.
PROFIT/LOSS ARRIVED AT AS PER AS7 DEEMED TO BE THE PROFIT OR LOSS OF THE ENTITY FOR THE ACCOUNTING PERIOD AND THE ENTITY CAN UTILISE THE RESEVES OR PROFIT AS ANY OTHER TYPE ENTITY WITHIN THE LIMITS OF THE VARIOUS ACTS APPLICABLE TO THE ENTITY.
THUS THE PROFT/RESERVE TRANSFERED IS NORMAL PROFIT AND CAN BE UTILISED AS LAID DOWN BY THE LAW
PROFIT/LOSS ARRIVED AT AS PER AS7 DEEMED TO BE THE PROFIT OR LOSS OF THE ENTITY FOR THE ACCOUNTING PERIOD AND THE ENTITY CAN UTILISE THE RESEVES OR PROFIT AS ANY OTHER TYPE ENTITY WITHIN THE LIMITS OF THE VARIOUS ACTS APPLICABLE TO THE ENTITY.
THUS THE PROFT/RESERVE TRANSFERED IS NORMAL PROFIT AND CAN BE UTILISED AS LAID DOWN BY THE LAW
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
