Treatment of profit

ABC  Co P( Land Owner) ltd entered into a collabration with XYZ Co P Ltd( developer Company).XYZ co is devlopnig the residential township as per agreement.

XYZ co. prepares its Financial Staements as per AS-7.

As ABC co. is not doing any constuction / development activity how it recognise profit on preparing financial statements.

Replies (1)

One has to first look at the development agreement between the two and determine their commercial role in the project.

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