03 October 2012
Hello Sir, My client has a business of turn key project for which it is recognising the revenue as per the payment term in the contract. i.e if in the contract there is a term of Advance payment then it is reconising such advance receipt as a income. is it feasible??? how to recognise revenue at the end of the year if project is not completed? I request you to give answer on the basis of IFRS.
04 October 2012
In case of any turnkey projects in India, for recognizing income one should follow AS-7 which states that one should recognize revenue according to work certified not as per payment terms in the contract.
CAclubindia
