Mode of recognizing revenue on “Percentage Completion Method” as explained by Jaipur ITAT

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Percentage Completion Method

Vastukar Township Pvt. Ltd vs. DCIT (ITAT Jaipur)

S. 145(2): Law on how revenue should be recognized by a developer of property under the “percentage completion method” in the light of Accounting Standards AS-1, AS-7 & AS-9, the Guidance Note on Accounting for Real Estate Transactions issued by the ICAI and several judgements on the issue explained

As per AS 7. The recognition of revenue and expenses by reference to the stage of completion of a contract. Is often referr to as the percentage completion method. Under this method, contract revenue is match with the contract costs incurred in reaching the stage of completion, resulting in the reporting of revenue, expenses and profit which can be attributed to the proportion of work completed…

Percentage Completion Method

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