Work in progress or unbilled revenue
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 December 2009
Can someone pls tell me how they calculate/estimate work-in-progress or unbilled revenue as per the requirement of As-7, for software development companies?
Contracts are both T&M and Fixed contracts.
Contracts are both T&M and Fixed contracts.
CMA Ramesh Krishnan
(Expert)
25 December 2009
As per AS-7 First you need to calculate the Percentage of completion of contract i.e cost incurred up to date/ total budgeted cost fo the project x 100
then you have to apply the percentage of completion on the contract value you can get the proportion value of sales related cost incurred
now you calculate
Unbilled Revenue=Actual sales - The sales proportion to the budget cost which you arrived based on the percentage of completion
then you have to apply the percentage of completion on the contract value you can get the proportion value of sales related cost incurred
now you calculate
Unbilled Revenue=Actual sales - The sales proportion to the budget cost which you arrived based on the percentage of completion
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