ICAI

Guidance Note on Accounting for Real Estate Transactions-ICAI. The Guidance Note is meant for entities to whom Ind AS is applicable

Guidance Note on Accounting for Real Estate Transactions-ICAI

ICAI has issued a Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable). The objective of the guidance note is  to recommend the accounting treatment by entities dealing in ‘Real Estate’ as sellers or developers and the Guidance Note covers all forms of transactions in real estate industry like Sale of plots of land, Development and sale of residential and commercial units, Acquisition, utilisation and transfer of development rights, Redevelopment of existing buildings and structures and Joint development agreements.

The Guidance Note consist of the following sections:

  1. Objective and Scope
  2. Definitions
  3. Accounting for Real Estate Transactions
  4. Application of Principles of Ind AS 18 in Respect of Sale of Goods to a Real Estate Project
  5. Application of Percentage Completion Method
  6. Accounting for Sale of Land or Plots
  7. Transferable Development Rights
  8. Transactions with Multiple Elements
  9. Disclosure Requirements

Apart from this illustrations have also been provided where needed.

Download Guidance Note on Accounting for Real Estate Transactions

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