GUIDANCE NOTE ON MAINTENANCE OF COST ACCOUNTING RECORDS FOR CONSTRUCTION INDUSTRY INCLUDING REAL ESTATE AND PROPERTY DEVELOPMENT ACTIVITY

Maintenance of cost accounting records: project wise cost capture and reconciliation required for construction and real estate compliance. Guidance prescribes that companies in construction and real estate maintain structured cost accounting records and periodic project wise cost statements in accordance with Generally Accepted Cost Accounting Principles and applicable Cost Accounting Standards. Costs must be recorded by defined cost objects (typically projects/sub projects), with allocation and absorption of materials, labour, direct expenses, utilities, repairs, overheads and finance charges; common plant costs are to be held in service cost centres and recovered by internal hire rates. Companies must reconcile cost accounts with financial accounts and file a board approved Compliance Report electronically in the prescribed format.