Multiple choice

D.S. Construction Company Ltd. is engaged in the business of purchasing of land and constructing flats by spending on labour, materials and other overheads on the construction of flats. This company sells these flats to the customers on advance booking basis. Which of the following acounting standards shall be applied for the revenue recognition by this real estate company?

  1. AS - 7

  2. AS - 9

  3. AS - 2

  4. AS - 10

  5. AS - 4
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As per AS - 2 valuation of inventories, FIFO and average method are methods of valuation of inventories. The LIFO (Last in first out method), HIFO (Highest In first out method) and NIFO (Next in first out method) are recognized by the AS - 2 valuation of inventories.

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