CONSTRUCTION INDUSTRY

As per the Accounting Standard the revenue recoginition has tobe made based on the % of completion method. i.e total project cost+estimated profit & actual expenses incurred as on that date. If you go thro' Accounting Standard 7 ( i suppose) you will have a clear picture as for as construction industry is concerned. All becoz in case of a manufacturing unit you can find out the finished goods, inventory, semi-finished goods etc., But this is very difficult in realistic in construction industry thats why the % of comletion method has to be adopted.