whether the recognition of retention money, receipt of which is contingent on the satisfaction of certain performance criterion is to be recognised as revenue on billing.
22 August, 2017
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Retention money, being part of overall contract revenue, shall be recognised as revenue subject to reasonabe certainty of its ultimate collection condition contained in para 9 of ICDS III on construction contracts.
Retention money recognition: recognise as revenue only when reasonable certainty of ultimate collection exists under ICDS construction rules.
Retention money within a construction contract is part of contract revenue and should be recognised as revenue on billing only when there is reasonable certainty of its ultimate collection, based on the contract's performance criteria and para 9 of ICDS on construction contracts.
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