Accounting of income in real estate sector
This query is : Resolved
19 April 2008
Hi!!
can anyone explain how income is recognised in case of developers (whose main activities is selling of flats / apartments). that is when the project takes more than a year to complete. the developers would have collected money in advance from the customers
AS 7 would not apply to the developers since they do not engage in the construction activities
AS 9 applicable for sale of goods and the services (and technical services).
in this situation how the revenue is recognised year on year
can anyone explain how income is recognised in case of developers (whose main activities is selling of flats / apartments). that is when the project takes more than a year to complete. the developers would have collected money in advance from the customers
AS 7 would not apply to the developers since they do not engage in the construction activities
AS 9 applicable for sale of goods and the services (and technical services).
in this situation how the revenue is recognised year on year
19 April 2008
Refer AS - 2 Inventory. For real estate developer. Flat is not a fixed asset it is inventory. and also refer revenue recongnition accounting standards
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
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Reporting Income under Section 44ADA
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR 2 Short Term gain & Long term gain
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
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
