Interested to Buy Any Domain ? << Click Here >> for more details...
Your marketing company has been working on a consulting
project for a client. Your team has worked on the project
for two months, and it is now year-end. The project will be
completed by February of the next year, and the client has
not yet been billed. For the financial statement, how
should project be classified?Should the costs associated
with an uncompleted consulting project be classified as a
work-in-process asset on the balance sheet or should the
cost be expensed on the income statement as a part of the
doing business?why?
- 2 Answers
- 3729 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
As mentioned by Sheril, money spent on the project should be
shown as Work-in-process in the period end Balance Sheet. If
it's charged off to the Profit & Loss A/c in the year of
spending, with our recognising the income associated with,
it will not be in Line with Accrual Concept of Accounting
(Refer the relevant AS issued by ICAI for accounting in
India of the relevant IAS/IFRS (if required for a foreign or
multinational company)
| Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
How to prepare in yearly turnover?
Mohan sold goods on 1st sep 2009 for the rs 200000/- to sohan immediatly accepted a 3 month bill.on the due date sohan request for the renewal of the bill for further peirod of two month .mohan agree to pay interest @9% per annum to be inculuded in the new bill . determine the amount of new bill?
what's the mean by Imprest system? Please give me Replay on this no. 9885789716
What are the criteria for accounting job?
using examples, examine the relevance of the following as final accouting adjustments; 1.reserves 2.provisions 3.disposal of assets 4.control accounts
accounting principles, accounting concepts,meaning of managment and financial accounting and cost accounting.
WHETHER CAPITAL RESERVE CREATED OUT OF SALE OF FIXED ASSETS OVER AND ABOVE THE COST BE TRANSFERED TO PROFIT AND LOSS ACCOUNT
Explain me bills receivable?
How is the accounting for lease transactions done?
What information do you require before you approve an invoice for payment?
In accounting equation what is the treatment of investment in shares??
My company was granted a bank facility of 750,000 for guarantee, performance bond, advance payment, retention guarantee and 100,000 bank overdraft. These facility amount was never added to the company account. a. What is the entry? b. Lien over fixed deposit for 50,000 to be brought upfront c. Lien over gradual buildup for fixed deposit 50,000 by transferring 10,000 monthly from customer's account to separate call account. d. After a month, we had an overdraft of 22,000. What will be my entry? e. After 3 months, we have a construction project and was asked for advance payment of 24,000 with a 25% margin? f. Another company asked for performance bond of 44,200 with 25% margin.
example wrongly financial statments showing vat refund (under Advances) for the finanical year 08-09 , but present assement year after assement by cto given vat refund more than ledger showing balance then decided to every month set off vat payable to vat refund(advance) but more than recoverd compare with company and cto then what is the entry to be take.
Define push down accounting?
What do u mean by press releases
