Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Accounting for Real Estate

Save Share

This query is : Resolved

Bhumika Worah (Querist)
Follow

25 July 2009 Hi,

Can anyone guide me as to which accounting standard is applicable for real estate developments capitalisation considering the following points -

a) AS-10, I believe is not applicable , as expenditure on real estate developments is specifically excluded in the standard.
b) Where the co. is engaged in construction of commercial properties and leasing these out, what would be the time when the project can be capitalised, if the building is complete but external developments eg facade etc are still going on ? Can partial capitalisation be done in such cases? (Further, the rentals have started generating as these have been handed over to the tenants for interior fit outs)

Thks

CA Akshat

CA Akshat (Expert)
Follow

30 July 2009 As they built commerciapl properties and they give on lease; the properties will be acquired by them. So, It should be capitalised by the developer. (hopefully AS 19 will be applicable)..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now