Income Recognition from Contracts Must Follow "Cost Based" Percentage Completion Method Per AS-7; Reimbursements Excluded from Profit.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income recognition from contract activity - recognition income on reimbursement - AS-7 - there is no change so far as “cost based” percentage completion method in concerned - in the case of reimbursement, there is no profit element, consequently, recognition income of such reimbursement is not appropriate....