Accounting for Real estate

Please give some light,
There is a real estate company,it incurrs cost on construction of buildings.How to record the direct cost like materials and all incurred specifically on a particular project? They are recorded as direct expenses or as WIP?

Replies (1)

if company want to sell the building on completion of project then recognize as direct expenditure, of if it want to lease it out then transfer to capital work in progress.

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