As-9, % method under real estate

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hetal sangoi (Querist)
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07 September 2017 "Revenue is recognized when the significant risks and rewards of ownership of the units in real estate
have passed to the buyer."

Above clause is it talks about only price?

or other points also covered? such as possession

sivaram

sivaram (Expert)
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07 September 2017 Dont confuse AS-9 revenue recognition with real estate sector for real estate Revenue recognition is governed by Guidance note 4 factors are there to fullfill revenue recognition

Four Factors are
1.25% of the cost for the project has to be incurred against budgets
2.There should be an Agreement to sell for 25% in terms of square feet of the total project
3.all necessary approvals from goverment authorities has to be obtained
4.atleast 10% of the money has to be realised in cash for the project cost

hetal sangoi

hetal sangoi (Querist)
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07 September 2017 in reference to your point 2 , is it on the basis of letter of allotment can be considered to recognize revenue ?

sivaram

sivaram (Expert)
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08 September 2017 if letter of allotment is an agreement then you can that agreement need not be registered

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