URGENT__Revaluation of Land for real estate developer

It is not clear from ur query that it is Capital Work in progress or Stock - Work in Progress....

If it is a Capital Work in Progress then the entire Class of assets (all other land) has to undergo revaluation...Individual assets cannot be revalued...Revaluation can be done based upon the Valuation report of the qualified valuer....

Valuation of Stock - Work in Progress has to dealt according to AS-2. 

The classification of asset is, it called as an asset only when it is ready to use. If work in progress is there, like constructing a building, only land can be revalued because the building did not come into existence. Now, when you revalue it for the first time, eg., land value is 100₹ last year and it is revalued to 110₹ this year, take the excess to OCI and from there take it to the reserves and surplus section in SOCIE. if the land value falls to 90₹, take the revaluation loss to SPL. This is the normal procedure for revaluation. The building your constructing will be in accordance with revenue recognition standard’s output method. Go through that standard for more clarity about satisfying your performance obligation over time. For the time being, if your constructing a building, mmmm...report expenses for work in progresses and let me guess, expense-> bank->WIP Asset. You can recognise WIP in fixed assets section if you have a reliable estimate and this can balance the balance sheet equation without tax or sometimes or overstate the assets. On a second thought, there is no credit entry for WIP so, technically can’t be recorded as it does not fall into the inventory category.   So don’t report WIP of your construction as IndAS 116 has no treatment for WIP.

Sorry did not have time to check other standards last night. CWIP recognition to that extent is not possible   while dealing with IndAS 116 but however raw material used is reported which includes WIP Of all sorts. This is the same for IndAS 2 & AS 2. AS 7 construction 🚧 contracts also offers a solution like stage of completion method but it is only used in the books of the Contractors. Technically, there is no valid formula to calculate WIP closing balance apart from auditors evidence or surveyors report like Amir mentioned above, The COGM method also requires WIP to be evaluated. Finally, for as 2 you will make a disclosure of WIP amount and for IndAS 2 you’ll include it in balance sheet. The revaluation has nothing to do with WIP and Hope this clarifies your query. This is for construction building for your own use.