International Research Journal of Commerce , Arts and Science

 ( Online- ISSN 2319 - 9202 )     New DOI : 10.32804/CASIRJ

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DETERMINATION OF ANNUAL PROFIT AND FORESEEABLE LOSSES IN CONSTRUCTION CONTRACT

    1 Author(s):  DR RACHNA GARG

Vol -  5, Issue- 8 ,         Page(s) : 158 - 167  (2014 ) DOI : https://doi.org/10.32804/CASIRJ

Abstract

The peculiarity in construction contract business is that the work is spread over a number of years and the question of determining profits there from on an annual basis bristles with difficulties. In contracts relating to construction of multi-storeyed building, bridges, dams, ships, etc., which entail operations for a number of years, a problem arises as to the allocation of revenues and related costs to various accounting periods over the duration of the contract.

Compendium of Opinions-ICAI  
Accounting Standard (AS) 4- Contingencies and Events occurring after the Balance Sheet Date 
Accounting Standard (AS) 7 – Construction Contract 

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