Accounting of income in real estate sector

This query is : Resolved

CA Shishir (Querist)
Follow

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

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
Follow

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

REGIWISE CONSULTANTS PVT LTD

bhavesh

Tanishka Khandelwal

Fredrick Samraj

Anant Kuber

Subscribe Now

Accounting of income in real estate sector

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

Senior Executive

Manager- Finance and Compliance

Accountant

GST CONSULTANT