Accounting treatment of work done but not certified

Dear All,

Greetings,

My query is in relation to Accounting treatment of Value of Work done but not certified, details as follows:

An entity is constructing a Building (as Investment Property) through contractor. Only 30% of construction is completed as at Balance Sheet date i.e. 31/3/15, hence said item is shown as 'Capital WIP' in its books.

On 15/4/15 Construction Contractor submits his bill for March'15 and same is certified by Engineer on 18/4/15. Please advise regarding accounting treatment of work done during March'15 but not certified as at 31/3/15.

Thank you in advance.

Best Regards,

Prashant

Replies (2)

Hello,

As far as the work completed bfr 31/03 pending to be certified from the Architect , Cant be considered as Complete . The same has to be considered in next financial year itself .

 

 

Dear CA Chandani, many thanks for the valuable advise.

Best Regards,

Prashant

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