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Recognition of Estimated Construction Contract Losses Immediately

Accountancy

Hi sir, hope you're well Since we recognize estimated losses immediately, and we recognize the costs and revenues of subsequent periods also, won't we be doing double-counting? Since the loss is being recognized effectively in two periods. Thanks Video Details ------------- P1 - Accounting Standards - CA Inter (New) AS 7 #5. Illustrations on Revenue Recognition

Devaprasad Jothimani

CA Inter

★ 0

12-Apr-24 13:19

Answers (1)

Expenses are recognised on a cumulative basis. Cumulative expenses incurred - Cumulative expenses recognised

CA Suraj Lakhotia

Admin

12-Apr-24 17:01

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