Comparison of ICDS III, AS-7, and Ind AS 115 on Construction Contracts and Revenue Recognition Methods

The document compares ICDS III, AS-7, and Ind AS 115 regarding construction contracts and revenue recognition. ICDS III mandates the percentage of completion method for revenue recognition, with profit recognition starting after 25% completion. AS 7 also uses the percentage of completion method, recognizing revenue based on reliable contract outcomes. Ind AS 115 focuses on transferring promised goods or services to customers, applying steps like identifying contracts, performance obligations, and transaction prices. Contracts under Ind AS 115 must meet specific conditions, such as commercial substance and identifiable payment terms. The document serves as a ready reckoner for income computation and disclosure standards.