Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ACCOUNTING STANDARD :: TDS :: VAT RATES :: due date for vat payment :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit
  Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS)-Information Technology Test
 CPE Events 19th March - 24th March 2018
 Advertisement for Invitining Consultants to Work With ICAI Accounting Research Foundation on Research Projects (in Chennai)
 Question Bank on IBBI Limited Insolvency Examination
 Here's how you can fix it Made a mistake while filing tax returns?
 Government Nomination on the Bench II and Bench III of the Disciplinary Committee Bench II and III
 Stringent Action Against Adoption of Unfair Means
 Guidance Note on Audit of Banks 2018 edition issued by the Auditing and Assurance Standards Board
 Assessment Test of the Certificate Course on International Taxation organized by the Committee on International Taxation of ICAI -15th April, 2018 (Sunday)
 Advisory for the Members regarding Allocation of Work among the Joint Auditors in case of Bank Audits
  Group to Study the Amendments Proposed by the High Level Committee set up by the MCA

ICAI note may delay revenue bookings of realty firms
March, 03rd 2012

The latest guidance note brought out by the Institute of Chartered Accountants of India (ICAI) on accounting in real estate transactions may delay revenue bookings by realty companies and erode their profitability.

According to the note, initial revenues from a project can be recognised only when all critical approvals are in place and 25 per cent of the project is sold. At least 10 per cent revenue realisation is yet another recommendation by ICAI. The note applies to revenue recognition in projects that will commence on or after April 1, 2012, and to those that have started but their revenue recognition will start on or after Arpil 1, 2012.

Although such notes are recommendatory in nature, these become accounting norms by default, auditing companies say.
In most cases, the revised note may require deferral of revenue until the stated criteria are met. So, top line and bottom line of companies with a lot of projects at nascent stage may get considerably impacted, says V Venkataramanan, partner (accounting advisory services) at global audit and advisory firm KPMG.

At present, property developers start recognisng revenues at different stages of construction. The range is between 20 and 30 per cent of completion of a project. While the countrys largest realty developer DLF starts recognising revenues after 30 per cent of construction is complete, Unitech starts it at 20 per cent. The note also excludes land costs in the calculation of the minimum threshold of 25 per cent.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions