I am not clear regarding the revenue recognition with respect to construction contracts, especially the case where expected costs exceeds expected revenue!
I have come to known that such a situation demands the expected loss to be treated as an expense.
But I have come across a situation where, % of completion is applied on such expected loss, and is stated that such portion is to be recognized in the P&L.. and the balance shall be provided for as provision-- Isn't this according to CONSTRUCTION CONTRACTS??
I have searched for illustrations on similar cases, but I couldn't figure out any!

Kindly clarify my concept,
Regards,
Hari krishnan.

What is capitalization pls explain.

what is capitalization,how it is done.

AS 16 provides that borrowing costs that are directly attributable to the ACQUISITION, CONSTRUCTION, OR PRODUCTION of a qualifying asset should be capitalized as part of cost of such asset.

Now, borrowing cost for renovation of an asset-will it be capitalized?
To be specific, such a renovation of an asset is neither an acquisition, construction or production, can it be a qualifying asset ??

Dear Experts,

Should Fees paid to Statutory auditor for the following be included in 'Taxation matters' under Schedule VI disclosure for Auditor remuneration:
a) Transfer pricing Form 3CEB
b) Form 15CB - s.195 certification


Thanks & Regards,
Rajesh

WE RECEIVED INVOICE OF ADVERTISMENT SERVICES IN NEWS PAPER, WHAT RATE OF TDS IN DEDUCT ?, PLEASE ADVISE

sir
x co. have 100% honkong subsy. now, subsy has calender year as thier f.y. and x co. has apr to march as their f.y.. how to prepare consolidated financial statement. please advise

Dear Experts,
Is it necessary to pass tds receivable entry in the accounts of a proprietor?

If yes, than how the entry should be passed considering the fact that all the receipts are cash/bank receipts. In other words there are no debtors in books, than which account should be credited?

And Under which head tds receivable should be shown in tally i.e current assets or capital accounts?
Kindly clarify. Thanks in advance.

What is intrinsic value

hii experts,

my company has purchased an old machine from foreign country as on 24.01.2012 for EURO 70000 and we capitalized this machinery as on 15.04.2012 and payment of it has not made yet..so what should be the treatment of exchange fluctuation as on 31-3-2013...exchange fluctuation should be capitalized or not.