Ind AS 115 Implementation.
Ind AS 115 decides when a real estate developer recognises revenue: over time as construction progresses, or at a point in time such as handover. The answer turns on your contracts, especially whether you have an enforceable right to payment for work done. We assess your contracts, choose how to measure progress, and build the policies, calculations and disclosures your auditors will review.
Typically 3–6 weeks, depending on the number of projects, the variety of contract terms and the quality of cost-to-complete data.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Real estate companies applying Ind AS because they are listed, cross the net-worth thresholds or belong to such a group.
- Developers moving from Indian GAAP to Ind AS.
- Companies with joint development agreements, where non-cash consideration and landowner shares need careful accounting.
What you receive at the end.
- 01Ind AS 115 assessment memo with key judgements
- 02Revenue recognition policy for the real estate business
- 03Project-wise calculation model
- 04Transition or restatement workings and draft disclosures
- 05Working session for your finance team
Ind AS 115 Implementation, step by step.
Typically 3–6 weeks, depending on the number of projects, the variety of contract terms and the quality of cost-to-complete data.
- 1
Contract review
We review agreements for sale, cancellation clauses and payment plans to identify performance obligations and whether control passes over time.
- 2
Progress measure
Where revenue is recognised over time, we design the measure of progress, usually a cost-based input method, and exclude costs that do not reflect progress.
- 3
Specific issues
We address significant financing components in payment plans, costs of obtaining contracts such as brokerage, and non-cash consideration under joint development agreements.
- 4
Policy and models
We draft the revenue recognition policy and build project-wise revenue and cost models.
- 5
Transition and disclosures
We compute transition or restatement effects, prepare the disclosures and walk your auditors through the key judgements.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Standard agreement for sale and allotment letter
- Project budgets, cost-to-complete estimates and actual costs to date
- Sales and collection data by unit
- Joint development and revenue-share agreements
- Current accounting policies and last audited financial statements
- RERA registration details and declared completion dates
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Ind AS 115 Implementation.
Ready to discuss Ind AS 115 Implementation?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.