AS 7
This query is : Resolved
SUNNY SEHGAL
(Querist)
25 June 2010
Sir,
Can any one tell me whether AS 7 will be apply to construction company and how much amount is to be considered for AS 7.Please tell me how to compute the same in detail.
Can any one tell me whether AS 7 will be apply to construction company and how much amount is to be considered for AS 7.Please tell me how to compute the same in detail.
25 June 2010
Yes of course it is applicable to Construction Companies.
And how to calculation, what to calculate is there in the AS itself in a clear manner.
Just have a read once Man, it woud nt hamper you, rather will help you.
And how to calculation, what to calculate is there in the AS itself in a clear manner.
Just have a read once Man, it woud nt hamper you, rather will help you.
SUNNY SEHGAL
(Querist)
25 June 2010
Thanks
CMA Ramesh Krishnan
(Expert)
25 June 2010
As per AS=7 you have to calculate percentage of compeletion need to follow for recognise the revenue
SUNNY SEHGAL
(Querist)
25 June 2010
but if the accountant has informed that the completion is 85% then.
CMA Ramesh Krishnan
(Expert)
25 June 2010
if the percentage of completion 85% you need to apply this percentage on the contract value arrive the equal percentage of sales and less what ever sales recognised up to earlier period and balance is the sales of the present period
26 June 2010
If you are an Auditor,
Dont get agree to the Accountant at the first instance untill you get satisfied with the same by Management Certificate for completion of Contract and supported by a report from a Technical Expert regarding the Completion stage of the Contract.
After that follow AS 7 as per completion Contract Method.
Dont get agree to the Accountant at the first instance untill you get satisfied with the same by Management Certificate for completion of Contract and supported by a report from a Technical Expert regarding the Completion stage of the Contract.
After that follow AS 7 as per completion Contract Method.
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