HISTORY OF ACCOUNTING STANDARDS APPLICABLE TO REAL ESTATE DEVELOPER
ANALYSIS OF GUIDANCE NOTE ON ACCOUNTING FOR REAL ESTATE TRANSACTIONS (REVISED 2012) 4.1 88 i -
REVENUE RECOGNITION FOR REAL ESTATE DEVELOPER UNDER IFRS
IMPACT OF INCOME COMPUTATION AND DISCLOSURE STANDARD
ANALYSIS OF PROVISION OF SECTION 45(2) REGARDING CONVERSION OF CAPITAL ASSET INTO STOCK IN TRADE
ANALYSIS
ANALYSIS OF THE PROVISIONS OF SECTION 50C, SECTION 43CA, SECTION 56(2)(x)(b) & SECTION 23(5)
CHAPTER
5.1 IFRIC 15 - ACCOUNTING FOR REAL ESTATE
Para 5.2
5.2 RECOMMENDATIONS OF IFRIC 15
a. Agreement is a Construction Contract (within the scope of IAS-11)
b. Agreement for the Rendering of Services (IAS-18)i.e.
Para 5.3
c. Agreements for the Sale of Goods (IAS-18)construction progresses single time i.e.,
5.3
(a) IFRIC 15 Agreements for the Construction of Real Estate becameeffective from 1st January, 2009 in the following background: i -
Para 5.3
(b) The Interpretation addresses two issues:
(c) Accounting for revenue from the construction of real estate
5.4 INTRODUCTION OF
The new guidance standardizes how companies should recognize revenue in financial statements under both US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
IFRS-15 establishes a comprehensive framework for determining when to recognise revenue and how much revenue to recognise. The core principle in that framework is that a company should recognise revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.
5.6 SCOPE OF IFRS-15 ,
a. Identify the contract(s) with the customer
b. Identify the performance obligations in the contract
c. Determine the transaction price
d. Allocate the transaction price
e. Recognise revenue when a performance obligation is satisfied
f. Revenue is recognised as control is passed, either over time or at a point in time.
g. An entity recognises revenue over time if one of the following criteria is met:
AUTHOR : Raj K. Agarwal, Rakesh Gupta
PUBLISHER : Taxmann
DATE OF PUBLICATION : March 2025
EDITION : 8th Edition
ISBN NO : 9789364559836
NO. OF PAGES : 584
BINDING TYPE : Paperback
This book is a specialised treatise on real estate taxation, focusing on Joint Development Arrangements (JDAs) and complex real estate transactions. Updated for the Finance Act 2025, it covers the latest income-tax provisions, accounting standards, and judicial precedents.
This book is intended for the following audience:
• Chartered Accountants, Company Secretaries, and Cost Accountants
• Lawyers, Tax Advocates, and Legal Practitioners
• Real Estate Developers, Landowners, and Builders
• Tax O cials and Policy Makers
• Academicians and Researchers
The Present Publication is the 8th Edition | 2025, amended by the Finance Act 2025. This book is authored by Dr Raj K. Agarwal & Dr Rakesh Gupta with the following noteworthy features:
• [Latest Amendments] Fully updated for changes introduced by the Finance Act 2025, alongside recent judicial pronouncements
• [Authoritative Analysis] Insights from two seasoned professionals with extensive academic and practical experience
• [Practical Scenarios & Case Studies]
o Discussion of complex transactions and judicial interpretations
o Reference to landmark decisions by the ITAT, High Courts, and Supreme Court
• [Detailed Discussion on Section 45(5A)] Thorough analysis of capital gains under JDAs, including controversies and unresolved issues
• [Coverage of Deeming Provisions] In-depth treatment of sections 43CA, 50C, 56(2)(x)(b), 23(5), and related safe harbour rules
• [Accounting Nuances] Explains the interplay of ICDS, AS-7, AS-9, ICAI Guidance Note, and IFRS 15 for revenue recognition and profit determination
• [Focus on A ordable Housing] A dedicated chapter on section 80-IBA, covering conditions and benefits for such projects
• [Comprehensive Structure] Logical chapter-wise approach, from fundamentals to advanced topics (capital vs business assets, TDR, JDAs breakdown)
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