Query of Ind AS 115

When there is uncertainty about cost estimation:

Revenue recognition: Revenue is recognized based on the percentage of completion if the out come can be reliably estimated. 

Uncertainty impact: If costs can not be reliably estimated, revenue is recognzed only to the extent of costs incurred that are expected to be recoverable.

Losses: If a loss is expected on the contract, it should be recognized immediately. 

In India, companies follow either Ind AS (for cetain companies) or AS (for others). Ind AS 115 deals with revenue from contracts with customers, including construction contracts. 

Thank you very much for taking the time to provide your valuable insights regarding the accounting treatment of long-term construction contracts under Ind AS 115.

Your explanation has given me a much clearer understanding of how revenue and profit should be recognized when there is uncertainty in cost estimation. I truly appreciate your expert guidance and the clarity you brought to the subject.

I am grateful for your support and will certainly keep your points in mind for future reference.