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Accounting of income in real estate sector

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(Querist)
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
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CA. Kirti S. Ganatra

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CA. Kirti S. Ganatra (Expert)
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
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