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Sir , while preparing financials of a company , its doing construction business , we prepare financials based on AS 7 or preparing financials as due basis .
Answers (13)
Sriram Somayajula Admin
AS 7
AS7 for construction revenue and expenses and rest of items as per applicable standards / schedule III
Thread Starter
Balamurali Unnithan M SHi Sir
Yes. Even AS 7 follows accrual concept only. AS 7 does not recommend cash basis - how to compute revenue / expenses for construction contracts is defined by AS 7
Thread Starter
Balamurali Unnithan M SAS 7 follows accrual concept or proportionate method , just clarify ?
It uses accrual concept only. And under that it shows how to go about accounting treatment of revenue and costs for construction contracts.
When we confirm , the contract receipt is due ? The govt .contractors not issue invoices to the department ,then thats very difficult to take the contract receipt ? We only identify it only on receipt basis , on the time of the amount credited to the bank account .
Thread Starter
Balamurali Unnithan M SWhen we confirm , the contract receipt is due ? The govt .contractors not issue invoices to the department ,then thats very difficult to take the contract receipt ? We only identify it only on receipt basis , on the time of the amount credited to the bank account .
ok. Is there a specific query that you have here?