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
- 3530 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / 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 |
what is the difference between profit and revenue?
how loan is different from debenture?
5 Answers State Bank Of India SBI,
whatis the meaning of Depreciation? and why it will charge?
april'13 salary we paid in aug'13 what is the entry in books
which subsidiary book is source of these:debit note,credit slip,
Difference Between Economics and Finance
Mobile on Rupees 2000 purchase for office use not for staff....What entry in accounts..?????
if accounting year is 2010-11 which will be the assessement year.
on 02/05/2013 issued a cheque to third eye ltd of Rs.14000/- in full and final settlement against the due on amount
What is the meaning of Trial Balance.
difference between funds flow and cash flow
what is the three basic rule of journel
Audit 
