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Profit or loss from ordinary activities
Normally all items of income and expanses
enterprises or an earthquake
Prior period items
Disclosure:
The nature and amount of prior period should
Disclosure:
Its effect should be disclosed in net profit or
loss.
The period of change, if the change effects the
period only.
The period of change and future period, if the
change effects both.
Change in accounting policies
Depreciation
Cost of depreciable assets
Increase / decrease in long term liability on
account of exchange fluctuation.
Price adjustments
Change in duties
AS-7 CONSTRUCTION CONTRACT
Objective
The objective of this Statement is to prescribe
1.Construction of asset
2.
3.Rendering of services which are directly
related to the construction of assets.
4.
5.Contract for destruction or restoration of
asset.
Types of construction contract
Fixed price contracts:- fixed rate per
unit
Contract cost
contract; and
(b) variations in contract work, claims and
incentive payments:
(i) to the extent that it is probable that they
will result in revenue; and
(ii) they are capable of being reliably
measured.
Contract revenue
Revenue/price agreed as per contract
Revenue arising due to escalation clause
penalties
Measurement of contract revenue
Till the stage of completion
Methods
income.
Cost specifically chargeable
Some general administration cost
Development cost
Reimbursement cost
Cost excluded
General administration cost
Selling cost
Depreciation cost
Provision for expected loss
Whether or not work has commenced
Advanced received