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AS 7

Sir , while preparing financials of a company , its doing construction business , we prepare financials based on AS 7 or preparing financials as due basis .


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

29-Jan-21 23:16

35

Answers (13)

AS 7


Sriram Somayajula

Sriram Somayajula

Admin

30-Jan-21 20:21

AS 7

AS7 for construction revenue and expenses and rest of items as per applicable standards / schedule III


Sriram Somayajula

Sriram Somayajula

Admin

30-Jan-21 20:22

But as per companies act , audit accounts on due basis?


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

30-Jan-21 21:12

Hi Sir


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

31-Jan-21 10:20

Hi 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


Sriram Somayajula

Sriram Somayajula

Admin

31-Jan-21 10:37

Thank u sir


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

31-Jan-21 10:52

AS 7 follows accrual concept or proportionate method , just clarify ?


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Feb-21 14:06

AS 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.


Sahibdeep Singh

Sahibdeep Singh

Moderator

02-Feb-21 15:48

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 .


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Feb-21 18:58

AS 7 Purely focused on accrual basis .


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Feb-21 19:58

AS 7 Purely focused on accrual basis .

yes


Sriram Somayajula

Sriram Somayajula

Admin

02-Feb-21 21:23

Yes


Vinay Maxx

Vinay Maxx

CA Inter

67K+

24-Feb-21 11:09

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