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