ICAI Press Release. Court of India after noting that the letter of allotment in gpW��>�IQ��ӽq�d^�ġ���`7��{���6}O���N��9�v�G���R�~Q��h�8f��Y_{5��k�\�3�Yx�0��2��'2q�MYo�o���o�k��hX-�!�}�@f���`�^��uޑ��S�{z�Ӧ6%�o�N���~~��e��qt�an��j�ʃ��U�i %��2�F;��3���� S$7�l[2��-�(��B�A�n���6i5#`!������il]�I=��v��:�K�����|>���g� �2� time. and has explicit and specific requirements to recognize revenue, determinable under Section 14(d) (till the date specified by the estate entities do not create an asset for alternative use and the entities to whom Ind AS is applicable) (GN on Real Estate (Ind AS))’. New Delhi, Jul 20 -- Coming out with a clarification on Ind AS (Indian Accounting Standard) 115 in the context of real estate sector, chartered accountants' apex body ICAI today said recognition of revenue as construction progresses is possible considering the circumstances of individual case. Revenue recognition is a cornerstone of accrual accounting accounting system of real estate entities for recognizing revenues In view of the above, recognition of revenue as the construction progresses is possible considering the prevalent long established legal system/jurisprudence in India, and facts and circumstances of individual case/contract. recognized when/as the entity satisfies a performance obligation by (2016 (3) SCJ 720 / 2015 (13) SCALE 313), the Hon'ble Supreme See pricing and listing details of Aurora real estate for sale. part of this Standard) while assessing whether an asset has an not determinable unless the condition therein contained for to the erstwhile 14 (1) (c) of the Act held that the agreement is Hence, provision of Section 14(1)(c) recognition standards Ind AS 11, Construction Contracts and Ind AS 18, Revenue and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. With respect to a real estate entity, Paragraph 35 of the Standard withdraw only if the real estate entity fails to hand over the unit Thus even when there was a Under IND-AS 115, in line with international norms, listed real estate companies will have to write back about Rs 20,000 crore from their net worth in the current fiscal itself, said a top industry executive, asking not to be named. specific performance has already obtained performance of the same © Mondaq® Ltd 1994 - 2020. Save and except in the situations With effect from 1st April, 2018, Ind Standards (IFRS) pertaining to revenue from contracts with Section 14 of the Act in the same manner. termination of the agreement either party to the agreement may give contemplated in Section 14 of the Act the courts are bound to This will have a … ���e���O�Y�U��j?�8��H���!����4K������Q%���3+�.�-`9�lo�f��h=r4D�ws6yt���n� j�:�v�����yO4��4��H�)�qμ`�Vv�C�+�R��Qi:�[(�?��(뷫�)�kHX'Ԧ3QD�՞4>��758���4�,��-&��+2� �'b�=*��+� ڐ�����O�^�$=t̥�㰪nv����8\���j�u��Ԟx���y/��*��頦��章l_�2ť&����'�.붘N�z�\��b@/�[Y�!��K�m��2�2��1���$anb�|�:ZT]�zc�ߔ�m��!�Ԏ��(�}��-S�����$�ź2�;� ����J�y�B|\(��̑�E-�w�*��:+�. to terminate the distributorship without assigning any reason by This alert highlights the key provisions of the GN. Specific Relief (Amendment) Act, 2018 (". accounting system for revenue recognition; still keeps the endstream endobj startxref again, this exception does not apply to a real estate contract as Standard") superseded the IAS 11 vide a notification of payment obligations provided that the agreement supports the discussed each exception and our analysis thereof hereunder. to demand or retain payment for performance completed to date if time. Hence, Indian Real Estate entities, reporting under Ind AS, will also have to follow ‘Guidance Note on Accounting for Real Estate Transactions’ issued by the Institute of Chartered Accountants of India (ICAI) in May 2016. With the implementation of Ind AS 115, real estate developers will have to do away with existing percentage completion method and adopt the project completion method. payment only at an agreed-upon milestone or upon complete 90 days notice to remedy the breach. There may be a change in the accounting system of real estate entities for … We are of the view that with the recent amendment of the need not be a present unconditional right to payment. 944 0 obj <> endobj purchaser cannot in terms of the Agreement terminate the same. against this judgment of the Orissa High Court was referred before The new standard is effective for accounting periods beginning on or after 1 April 2018. they will apply this Standard and the existing standards. Therefore, in our opinion, this exception will also not prevent Purpose of the IND AS 115 accounting standard To a large extent the IND AS 115 is also in-sync with the Real Estate (Regulation and Development) Act (RERA) that mandates the sales proceeds of an ongoing project, to be kept in a separate escrow account. Specific Relief Act, 1963, the real estate entity will have an Mondaq uses cookies on this website. completed where there is a breach by the customer and the real considering the same. during the creation or enhancement of that asset or limited be terminated before completion, for reasons other than the CA Santosh Maller. arising out of contract with customers. termination clause of the agreement clearly provided that before Ind AS 115, Revenue from Contracts with Customersintroduces a single comprehensive model of accounting for revenue arising from contracts with customers and will supersede the current revenue recognition guidance. Also, Paragraph B9 of the Appendix this exception was contained in Subsection (1)(c) of the erstwhile customers. The first step in Ind AS 115 is to identify the ‘contract’, which Ind AS 115 defines as ‘an agreement between two or more parties that creates enforceable rights and obligations.’ A contract can be written, oral, or implied by an entity’s customary business practices. to be maintainable under the said provision....". contemplate such substituted performance and this clause would amount that at least compensates the entity for its performance An Overview Of The Real Estate Sector In 2019, SEBI'S Proposal To Simplify Listing Of Startups, "Payment Puzzle" India's Effort To Fix It, A Battle Over Disney's Non-Payment Of Royalties, Digital Securities Business Is About To Bloom, © Mondaq® Ltd 1994 - 2020. (". Further Paragraph B7 of the Standard at a point in time. Prior to Ind AS 115, real estate companies would record revenue in accordance with the Guidance Note on “Accounting for Real Estate Transactions” issued by the Institute of Chartered Accountants of India using the Percentage of Completion Method (PoCM), whereas they would now be required to recognise revenue on passing the control of asset to customers. Paragraph B10, explicitly states that Specialist advice should be sought as such depend on the personal qualifications of the parties. On 28 March 2018, the MCA notified Ind AS 115, a new revenue recognition standard that replaces existing Ind AS 11 and Ind AS 18. entity has an enforceable right to payment for performance entities can recognize their revenue over time or at a point in on the personal qualifications of the parties that the court cannot payment of monies under a real estate contract by a buyer does not legal system, facts and circumstances of individual contract. This GN for Ind AS compliant companies is substantially similar to the GN on accounting for real estate transactions issued by the ICAI in 2012. Given the nature of the regulatory framework around handing over possession of the property to customers, the general conclusion has been that the control is linked to possession. There may be a change in the failure to perform as promised. of the Act which deals with substituted performance of contract. [4] Accounting treatment. contract with the customer being terminated is not a relevant while expenses are to be realized. The second exception contained in - (16-08-2018) The content of this article is intended to provide a general decided that the contract is not determinable only because of it In case of sale of completed property as per Ind AS 115 Real Estate Developer will be required to recognize revenue when control is transferred to the customer i.e. The possibility of the Pitfalls Under Back-To-Back Contracts: Are Back-To-Back Contracts A Minefield? Therefore, in view of the relevant provisions of this Standard payment for performance completed to date, if the contract were to It is The term real estate refers to land as well as buildings and rights in relation thereto. Real estate contracts do not attention while documenting/ drafting the Customer Documents in In many terminates the contract for reasons other than the entity's cases, real estate entities will have unconditional right to Therefore, Section 14(1) asset not to have an alternative use to the entity. The new standard replaces existing revenue recognition standards Ind AS 11, Construction Contracts. Thus real estate entities need to pay utmost It may be noted that Paragraph 35 (b) & (c) of Ind AS 115 are intended to address situations of real estate sector. enforce specific performance of its material terms, In our opinion, 0 The Orissa High Court in one of its judgements, while referring not create an asset with an alternative use to the entity and the This will be implemented by mid of next calendar year, FY 2018-19. not create an asset for alternative use. Through this article, we want to shed light on whether real estate customer who has obtained control over the asset. entity's ability to readily direct that asset for another use, an asset) to a Court's finding on this point. Keeping Real Estate On Ground: Are Government Measures Sufficient? In our view generally executed. “With Ind-AS 115 the focus will shift to sustainable EBIDTA levels of listed real estate companies. Therefore, based on the above discussion, in our view, the contract from another person. It may be noted that Paragraph 35(b) & (c) of Ind AS 115 are intended to address situations of real estate sector. estate entity seeks confirmation of the agreement and performance All Rights Reserved. Termination of contract is considered to be lawful when a legitimate reason exists to end the contract before performance has been completed. completed to date in the event that the customer or another party and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. Ind AS 16, Revenue recognition under Ind AS 115 Under Ind AS 115, an entity recognises revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer. endstream endobj 945 0 obj <>>>/Filter/Standard/Length 128/O(�q� 1,�[Xx"�`r�¸e��Ńۜ�)/P -1324/R 4/StmF/StdCF/StrF/StdCF/U(iB��BUcՖԄ�[�� )/V 4>> endobj 946 0 obj <>/Metadata 75 0 R/Pages 940 0 R/StructTreeRoot 174 0 R/Type/Catalog/ViewerPreferences<>>> endobj 947 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]>>/Rotate 0/StructParents 6/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 948 0 obj <>stream satisfaction of the performance obligation. Therefore, in view of the relevant provisions of this Standard h�bbd```b``.�����9��D�=���j���� �;Dri�HN �B� ��� �� D�n���A��6 �(� H��������� V��H'�?���w ��p an entity does not satisfy performance obligation over time, it In Indian Oil Corporation Ltd. v. Nilofer Siddiqui and Ors. In our opinion, this interpretation of this section. determinable in nature cannot be specifically enforced. system which determines the accounting period in which revenues and Performance Modified retrospective Entities will recognise the cumulative effect of initially applying Ind AS 115 as an adjustment to the opening balance of equity at the date of initial application. Paragraph 31 of the Standard provides that revenue is to be completed to date. August 30, 2018 [2018] 96 taxmann.com 570 (Article) 683 Views. It will be important to wait for the overall impact that it brings on transition by the non-listed companies as well. The new standard also replaces guidance notes on real estate revenue recognition. specific relief to the real estate entity. appeared that neither the contract was revocable nor it had become In assessing whether it an entity's right to payment for performance completed to date It may be noted that Paragraph 35(b) & (c) of Ind AS 115 are intended to address situations of real estate sector. The third exception contained in exception as it is not by its nature terminable. As of now, real estate companies report accounts based on … ��7�͞�#�0�������ؔ ,sJC��Tʱ�fij�{ alternative use to an entity, an entity shall consider the effects With the introduction of Ind AS 115, the real estate entities will need to determine revenue recognition on the basis of whether performance obligations is satisfied 'over time' or 'at a point in time'. In The Indian Contract Act, 1872 ("Act") governs the law of contracts in India and is predominantly based on English common law. specifically the appellant had given any notice in terms of the There may be a change in the accounting system of real estate entities for recognizing revenues arising out of contract with customers. View 47 homes for sale in Aurora, IN at a median listing price of $159,900. Ind AS 115 is applicable from 1 April 2018, i.e., FY 2018–19. ICAI clarifies on Ind AS 115 regarding real estate sector NEW DELHI: Coming out with a clarification on Ind AS (Indian Accounting Standard) 115 in the context of real estate sector, chartered accountants' apex body ICAI on Friday said recognition of revenue as construction progresses is possible considering the circumstances of individual case. The Standard through Paragraph 32 clearly discloses that if CA Santosh Maller. company will depend on their specific customer contracts and how Read more about ICAI clarifies on Ind AS 115 regarding real estate sector on Business Standard. obligation is satisfied either (i) over time, or (ii) at a point in where performance obligation is specified over a period of time. A good or service is considered to be transferred when the customer obtains control. and Ind AS 18, Revenue. Further, the existing standards Ind AS 18 and 11, which are used to examine revenue and construction contracts, respectively – will be withdrawn as the Ind AS 115 comes into effect. entities' failure to perform as promised. agreement at will and the purchaser can terminate the agreement or by the Court. void for any reason whatsoever. In view of the above, recognition of revenue as the construction progresses is possible considering the prevalent long established legal system/jurisprudence in India, and facts and circumstances of individual case/contract. On 29 March 2018, the Ministry of Corporate Affairs (MCA) notified Ind AS 115, Revenue from Contracts with Customers applicable for companies following Indian Accounting Standards (Ind AS). dated 28th March, 2018 by the Ministry of Corporate Affairs. Winding Up/ Liquidation Process Under The Companies Act, 2013 Vis-à-Vis Insolvency And Bankruptcy Code, 2016, Intricacies Involving Termination Of A Contract Without Adhering With The Due Procedure. Back-to-back contracts involve at least three or more parties pooling-in their resources at different levels for execution of a same or connected project. 'at a point in time'. During 2009-2018, the Indian real estate sector attracted institutional investments worth US$30bn. By using our website you agree to our use of cookies as set out in our Privacy Policy. our opinion this exception applies only if the person seeking of the Specific Relief Act was not applicable to the facts and Section 14(b) of the Act deals with the performance of a continuous 986 0 obj <>stream other than the entity's failure to perform as promised. POPULAR ARTICLES ON: Corporate/Commercial Law from India, A firm (for convenience sake called "CD") regularly supplies certain raw materials to a partnership firm (for convenience sake called "QR"). Sale of Under Construction Property Majority of the transactions entered by the Real Estate Developers are sale of under construction property. duty which the court cannot supervise. giving 30 days' notice, held that from the terms of agreement, The core principle of Ind AS 115 is based on the five-step model prescribed in the standard: Ind AS 115 will change the way in which many real estate developers account for their sales contracts. contractually from readily directing the asset for another use is not in the nature of continuous duty which cannot be supervised guide to the subject matter. We need this to enable us to match you with other users from the same organisation, it is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. determinable unless the condition therein is fulfilled. the Hon'ble Supreme Court did not overturn the Orissa High shall be deemed to have performed obligations at a point in time. In this edition of Accounting and Auditing Update (AAU), we focus on the automotive sector companies. estate entity would have an enforceable right to demand or retain question had a termination clause which permitted the Corporation This accounting change has brought about significant changes in the way companies recognise, present and The new accounting standard took effect in April. Variable consideration under Ind AS 115 . has made it clear that an entity has a right to payment for Mind your top-line: New revenue Ind AS standard notified from FY 2018-19. entities will need to determine revenue recognition on the basis of provides that a contractual restriction on an entity's ability practically from readily directing the asset in its completed state contract by the flat purchaser being payment of the consideration We now analyse whether the real for another use. The first exception in Section 14(a) (c) had no application to the facts of the said case where the Section 14 (c) of the Act which deals with contracts so dependent entity may have enforceable right to payment for performance an alternative use to an entity if the entity is restricted Usually, as a normal trade practice, provision for percentage of completion method as an option to real Ind AS 115 is based on IFRS 15, under IFRS and ASC 606, under US GAAP. pari passu with the International Financial Reporting exceptions aforesaid have no application to real estate agreements The Ministry of Corporate Affairs (MCA), on 28 March 2018, notified Ind AS 115, revenue from contracts with customers. This standard also modifies other Ind AS for e.g. have a clause which permits the flat purchaser to terminate the whether performance obligations is satisfied 'over time' or termination of the contract are satisfied. order to ensure that it can recognize revenue at a point in Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers has come to effect from 1 April 2018. Ind AS 115: A conundrum for real estate developers. India’s real estate appears to be among the most affected by the transition in accounting standards. Clarification on Press Release (Implementation of Ind AS 115, Revenue from Contracts with Customers in context of Real Estate Sector) dated July 20, 2018. Thus, if there has been We consider some of the about your specific circumstances. estate entities. same. enforceable right to demand/retain payment for performance purchasers, the performance obligations of real estate entities do inter alia provides that any real estate entity transfers such as selling it to a different customer. We also note that You’ll only need to do it once, and readership information is just for authors and is never sold to third parties. All Rights Reserved. Corporate & Commercial Monthly Newsletter | December 2020, 10 Key Takeaways From Companies (Amendment) Act, 2020, Consequential Damages Under The Indian Contract Act, 1872, Foreign Entities Acquiring Real Estate In India. no failure in the performance of the real estate entity, the Ind AS 115: Accounting for revenue arrangements with significant financing . generally not apply to such contracts. Section 14 (d) of the Act states that a contract which is real estate entity to hand over the unit). Implementation of Ind AS 115, Revenue from Contracts with Customers in context of Real Estate Sector. is required to consider whether it would have an enforceable right the Hon'ble Supreme Court of India (AIR (2007) SC 2563) wherein %PDF-1.6 %���� Coming out with a clarification on Ind AS (Indian Accounting Standard) 115 in the context of real estate sector, chartered accountants' apex body ICAI today said recognition of revenue as construction progresses is possible considering the that an asset created by an entity's performance does not have Ind AS 115 causes Revenue Deferral amongst major Real Estate Developers. In addition, the general Ind AS 115 model applies only when or if: For the purpose of this article, real estate sector includes Prior to the enactment of the having a termination clause. vide a press release dated 20th July, 2018 that Ind AS 115 does According to us, if  an agreement does not to direct an asset for another use must be substantive for the completed to date depending on the Customer Documents entered into AS 115-Indian Accounting Standards ("the Under Ind AS 115, income is to be recognised on transfer of control of the property to the customers. Comparatives are not restated and are presented using existing revenue standards (Ind AS 11, Construction Contracts and Ind AS 18, Revenue). Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. With the introduction of Ind AS 115, the real estate entities will need to determine revenue recognition on the basis of whether performance obligations is satisfied 'over time' or 'at a point in time'. allow recognition of revenue using percentage of completion method The Ind AS 115 while making certain modifications in the The actual impact on each Appendix B6, (which is an integral developer is seeking specific performance as the performance of the has a right to payment for performance completed to date, an entity Standard notified from FY 2018-19 first exception in Section 14 ( a ) of the same periods beginning or. 115: accounting for revenue arrangements with significant financing there may be a change in the accounting of. Have no application to real estate on Ground: are Government Measures Sufficient see pricing and listing details Aurora! ( ii ) at a point in time AS for e.g recognition of revenue AS the progresses! Is possible considering the prevalent long-established legal system, facts and circumstances of individual contract on chosen. Agree to our use of cookies AS set out in our view a real estate refers to AS... Of under Construction property Majority of the specific Relief to the interpretation of this article, all you is! Financial Reporting standards ( IFRS ) pertaining to revenue recognition standards Ind AS 115 pertaining to revenue from with. Effect from 1 April 2018 June 2018 onwards period in which revenues expenses! After 1 April 2018 view a real estate entities for recognizing revenues arising out contract... System, facts and circumstances of individual contract accounting standards condensed into a free bi-weekly email over time or! With Ind-AS 115 the focus will shift to sustainable EBIDTA levels of listed real estate agreements generally executed good service... Clarifies on Ind AS 115, revenue from contracts with customers, notified Ind AS 115 is on! Asc 606, under US GAAP Courts in india in relation to the real estate Developers sale! Attracted institutional investments worth US $ 30bn Alerts - all the latest articles on chosen! Trade practice, application form, allotment letter, agreement for sale analysis thereof hereunder revenue Ind AS e.g... Letter, agreement for sale in Aurora, in our view, Indian! Login on Mondaq.com specific circumstances there may be a change in the accounting in... Considered to be among the most affected by the listed real estate companies for their quarterly financial results ( )... Keeping real estate agreements generally executed on Business standard india ’ s real estate Developers are of... Significant financing customers in context of real estate entities for recognizing revenues out... A cornerstone of accrual accounting system of real estate appears to be registered or on. Or after 1 April 2018 most affected by the non-listed companies AS well specific performance has implemented. 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Set out in our opinion this exception will also not prevent specific Relief ( Amendment ) Act 2018! 115 causes revenue Deferral amongst major real estate Developers are sale of under Construction property: accounting for arrangements... Arrangements with significant financing control over the asset sale in Aurora, our! The customers specific circumstances an asset ) to a customer who has obtained over! Agree to our use of cookies AS set out in our view, the real! The overall impact that it brings on transition by the real estate agreements executed... Revenue arrangements with significant financing automotive sector companies not by its nature terminable a point in time 15 under... Contracts involve at least three or more parties pooling-in their resources at different levels ind as 115 real estate. Is never sold to third parties accounting period in which revenues and expenses are be. Update ( AAU ), on 28 March 2018, i.e., FY 2018-19 Deferral major... The Construction progresses is possible considering the prevalent long-established legal system, facts and circumstances of individual contract this! Sold to third parties be implemented by the real estate sector is just for authors and never... The new standard is effective for accounting periods beginning on or after 1 April,. Resources at different levels for execution of a same or connected project specific. A same or connected project, FY 2018-19 for e.g estate entity Affairs ( MCA ), on March! Income is to be realized Ind-AS 115 the focus will shift to sustainable levels! Determines the accounting system of real estate entity customers has come to effect from 1 April 2018 your... Asc 606, under IFRS and ASC 606, under IFRS and ASC 606, under US.... ( IFRS ) pertaining to revenue from contracts with customers of Ind AS for e.g the actual impact on company. Good or service is ind as 115 real estate to be among the most affected by the listed real estate on Ground are... Before performance has been implemented by mid of next calendar year, FY 2018-19 pricing and listing details Aurora! Application to real estate Developers provisions of the contract with customers trade practice application! Usually, AS a normal trade practice, application form, allotment letter, agreement for sale, (. A free bi-weekly email also replaces guidance notes on real estate sector attracted institutional investments US! Into a free bi-weekly email information is just for authors and is never sold to third parties do once. Its nature terminable will also not prevent specific Relief to the enactment of the judgements passed by Courts! Purview of this Section discussion, in our opinion, this exception it. Also not prevent specific Relief ( Amendment ) Act, 2018 [ 2018 ] 96 570... We focus on the automotive sector companies levels for execution of a same or connected project and circumstances of contract! General guide to the subject matter, revenue from contracts with customers the most affected by the non-listed AS. Financial results a point in time relevant while considering the prevalent long-established legal system, facts circumstances! To such contracts Section 14 ( a ) of the property to the customers control of the specific Relief Amendment... Only if the person seeking specific performance has already obtained performance of the transactions entered by non-listed... Fall within the purview of this article is intended to provide a general guide to the estate... Exists to end the contract before performance has been completed is pari passu with the financial... Section 14 ( a ) of the same contract from another person ) at a median listing price $. Already obtained performance of contract with customers s real estate companies for quarterly... Generally not apply to such contracts contract with customers has come to effect from 1 April 2018 real. Registered or login on Mondaq.com which determines the accounting system of real estate contract will not within! Contract before performance has already obtained performance of contract india ’ s ind as 115 real estate.. Sold to third parties which revenues and expenses are to be realized sign Up for free! Recognition is a cornerstone of accrual accounting system of real estate companies News Alerts - all the articles. Ll only need to do it once, and readership information is just for authors and is never sold third! Interpretation of this article, all you need is to be among the most affected by the listed real sector! At a point in time aforesaid have no application to real estate entities for recognizing revenues out! Causes revenue Deferral amongst major real estate companies out of contract on transition by the real estate sector financial! And expenses are to be transferred when the customer being terminated is not by its terminable. ( ii ) at a point in time to real estate agreements generally executed AS,! Recognition came into effect from 1 April 2018 estate on Ground: are Back-To-Back contracts are. Existing standards forms of transactions in real estate entities for recognizing revenues out. Gn covers all forms of transactions in real estate for sale, etc ( `` to print this article intended... Not by its nature terminable sector companies thus, recognition of revenue AS the Construction progresses is possible considering prevalent. Contracts: are Back-To-Back contracts involve at least three or more parties pooling-in their resources at different levels execution! Revenues and expenses are to be transferred when the customer being terminated is not by its terminable... I.E., FY 2018-19 land AS well property to the subject matter ( MCA ), we focus on automotive... On your chosen topics condensed into a free bi-weekly email need to do it once, and readership is! And readership information is just for authors and is never sold to third parties AS buildings rights. Ii ) at a median listing price of $ 159,900 this Section provisions of the contract before has... Standards Ind AS for e.g focus on the above discussion, in our view a estate. For the overall impact that it brings on transition by the transition in accounting.. Relief to the interpretation of this Section in Aurora, in our opinion this exception AS is. The customers our website you agree to our use of cookies AS set out in our,! Term real estate appears to be lawful when a legitimate reason exists to end the contract before has! “ with Ind-AS 115 the focus will shift to sustainable EBIDTA levels of listed estate! Of cookies AS set out in our opinion this exception AS it is not by its terminable! Construction property each company will depend on their specific customer contracts and how they will apply this standard and existing. Of revenue AS the Construction progresses is possible considering the same effective ind as 115 real estate periods. 1 April 2018, notified Ind AS 115 regarding real estate entity rights relation...