Revenue recognition at the time of handing over possession?
This query is : Resolved
22 February 2014
Can a real estate developer recognise his revenue from flat receipts at the time of handing over the possession of flats and not on percentage completion basis?
CA Sanjeev Kumar
(Expert)
23 February 2014
AS-9 does not specify about the recognition on income in case of real estate entity, and therefore booking of income over possession is fine, however, there has to be certainty over the receipt of income.
Further, the clear accounting policy has to be there in the notes to a/c as per AS-1.
Further, the clear accounting policy has to be there in the notes to a/c as per AS-1.
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