Guidance Note on Accounting for Real Estate Transactions
(for entities to whom Ind AS is applicable)
Under the convergence process of Ind AS with IFRS, it has been decided that for real estate developers IFRIC 15, Agreements for the Construction of Real Estate would not be adopted. Indian Accounting Standard (Ind AS) 18, Revenue, notified under Companies (Indian Accounting Standards) (Amendment) Rules, 2016, accordingly, do not include IFRIC 15. Instead, it states that for real estate developers, revenue should be accounted for in accordance with the Guidance Note on the subject being issued by the Institute of Chartered Accountants of India.
Accordingly, Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) has formulated the Guidance Note on ‘Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable)’ which is issued after its approval by the Central Council of the Institute.
The said Guidance Note can be accessed/downloaded on/from the Institute’s website namely,www.icai.org at the following link:
http://resource.cdn.icai.org/42173asb31843.pdf
Source : http://www.icai.org/
