NirmaanOne Help
How-toReviewed 2026-09-29

Recognise rehab units as non-cash consideration

For a redevelopment project whose CA treats the flats given to society members as the price of the development rights: switch the policy on, record the agreement date and the fair value of the rights on the project, and let the revenue runs book the rights and the rehab revenue.

Recognise rehab units as non-cash consideration

In a redevelopment, the developer pays for the society's development rights mostly in kind: the new flats handed to the members. Under Ind AS 115 a CA may treat those flats as revenue earned for the rights received, at the rights' fair value. NirmaanOne books this only when the books' revenue policy says so and the project carries the agreement date and the fair value; the revenue runs do the rest.

Before you start

  • The CA has concluded that the rehab units are non-cash consideration and has fixed the fair value of the development rights. The switch is a judgement area and stays off unless the CA says otherwise.
  • The project is a Redevelopment project whose promoter keeps these books; the Offers to allottees section appears only for that project type.
  • The members' offers exist (see Draft an offer), and, for their share to be recognised, their allotted units are booked and handed over (see Start allottee purchases).
  • The revenue runs work already: see Prepare, review and post a revenue run.
  • Permissions, in the role editor's words:
    • the View permission on Books and on Revenue Recognition to see the policy;
    • the Approve permission on Revenue Recognition to change the policy and to post a run (the default Finance Lead and Administrator roles);
    • the Edit permission on Projects to record the agreement and fair value;
    • the Create permission on Revenue Recognition to prepare a run.

Steps

  1. In the sidebar open Accounting > Books, open the promoter's books and choose the Revenue policy tab. You see the books' policies with the one In force marked, and its form below. See Revenue policy.
  2. Click New policy from a date. The form "New policy" opens as a copy of the policy in force, dated today. (You can instead click the pencil on the in-force row, but only while it isn't Locked; a policy a posted run has used can't change.)
  3. Set Effective from to the date the CA's treatment starts. The hint reads "Billing and revenue runs on or after this date follow the new policy."
  4. Under Judgement areas ("Off unless the CA has concluded otherwise."), switch on Rehab units as revenue (non-cash consideration): "Redevelopment: the units handed to society members are revenue for the development rights received, at the project's fair value." Put the CA's memo reference in Notes.
  5. Click Add policy (Save policy when you edited a row). You see "Revenue policy from <date> saved." and the row appears in the table.
  6. Open the redevelopment project from Projects and click Edit. The page "Edit <project>" opens. See Edit project.
  7. In the section Development agreement ("The rights received from the society, when the books' revenue policy treats rehab units as non-cash consideration."; shown on a Redevelopment project only, on the edit page and on the wizard's Land & RERA step), enter:
    • Development agreement date: "When the rights were received. Used only when the books' revenue policy treats rehab units as non-cash consideration."
    • Fair value of the development rights (optional) (₹): "The CA's fair value of the rehab consideration: Dr 1600 / Cr 2115 on the agreement date, revenue (4140) as each member's units are handed over."
  8. Click Save changes. The project keeps the agreement date and the fair value.
  9. In the sidebar open Accounting > Revenue Recognition, click New revenue run, choose a Period end on or after the agreement date and click Prepare draft. The draft Revenue run opens; the society members' offers appear in Bookings and member offers as "Member offer" lines.
  10. Read the Member offer lines. Each Price now includes the offer's share of the fair value, by its entitled area, alongside any tenant charges. The Progress note says what the line is waiting for, for example "No unit allotted", "An allotted unit has no booking yet" or "Waiting for: possession handed over".
  11. Click Post run and confirm with Post run. You see "Run <no> posted: <n> journal(s)." The Journals card includes a journal whose narration reads "Revenue run <no>: development rights received to <date> (<project>)".

What happens next

  • The fair value is booked once the agreement date is on or before a run's period end: Dr 1600 Land and Development Rights, Cr 2115 Contract Liability - Rehab Consideration.
  • As each member's allotted units are handed over, the run recognises that member's share to 4140 Revenue - Rehab Units and draws down 2115. The Contract balances tab shows 2115 with the other contract liabilities.
  • With the switch on and a fair value recorded, the rehab units join the cost pool: each member offer takes a share of the project's cost as cost of sales for its allotted units, in step with its progress. Without the treatment, the project's cost is shared across the saleable units only.
  • Member offers appear on the Remaining obligation tab only after a posted run has given them a line.
  • The policy shows Locked once a run using it is posted. To stop the treatment, add a new policy from a later date with the switch off.

If something goes wrong

  • "A posted revenue run has used this policy, so it stays as it is. To change the policy, add a new one from a later date." or "These books already have a revenue policy from that date": use New policy from a date with another Effective from. See Revenue policy cannot be changed or deleted (trouble.accounting.revenue-policy-locked).
  • "A Draft estimate already exists for this opportunity. Edit that draft instead of creating another." when preparing the run: a revenue run draft already exists for these books; post or delete it first. See Revenue run cannot be started, posted or reversed (trouble.accounting.revenue-run-draft-exists).
  • "Period <n> of <FY> is locked" or "No fiscal year covers that date. Open the next fiscal year under Books first." on the run: see No open period for the date (trouble.accounting.fiscal-year-missing).
  • "Only a user allowed to approve revenue (REVENUE:approve) can change the policy." on the form, or Post run greyed out with "Posting a revenue run needs REVENUE:approve": ask someone with the Approve permission on Revenue Recognition. See No access (trouble.admin.no-access).

Related

  • Revenue policyScreen

    The CA's effective-dated choices on how the books recognise sale revenue and the costs that go with it: framework, method, possession trigger, OC rule, cost treatments and judgement areas.

  • Edit projectScreen

    Change a project's facts on one page: basics, site address, land survey details and expected possession, and, on a redevelopment, the development agreement date and the fair value of the development rights. The settings the project inherits from the organization live on its Settings tab.

  • Revenue runsScreen

    The revenue runs (period closes) of the chosen books, the dialog that prepares a new draft run, and the scheduled rules that draft runs automatically.

  • Revenue runScreen

    One period close: what each booking and member offer recognises, the journals and cost moves it posts, the subjects it left out, and the actions to recompute, post, reverse or delete it.

  • Contract balancesScreen

    The Ind AS 115 contract-balances disclosure per project over a period: contract liability, contract asset and contract acquisition costs rolled forward from the ledger, with the revenue recognised in the period and how much of it came out of the opening liability.

  • Remaining obligationScreen

    The Ind AS 115 disclosure of revenue still to come from what is already booked: each live booking and member offer's price less what the posted revenue runs have recognised, per project, banded by the financial year of the project's expected possession.

  • Booking overviewScreen

    A booking's home page: the applicant and unit, parking, dates, money summary, termsheet status and possession, with the buttons to edit the booking, see its history, jump to the opportunity or cancel it.

  • Set the revenue policy and prepare the chart for itHow-to

    Record the CA's revenue recognition choices for a set of books as an effective-dated policy, set an organization-wide default or a project override where needed, and prepare the chart, cost centres, cost budgets and construction stages the revenue runs read.

  • Prepare, review and post a revenue runHow-to

    The monthly revenue close: prepare a draft revenue run for a period end, read what each booking and member offer would recognise, fix what holds lines back, post the run's journals, and check the contract balances and the balance sheet.

  • Split the entitlement and start the allottee's purchasesHow-to

    Decide how the entitled area falls on each allotted unit and how much of the extra area the allottee pays for, then open a purchase per unit and price it through the usual estimate, approval and booking.

  • Draft an offer to an allotteeHow-to

    Prepare the offer (term sheet) for a society member, landowner or PAP tenant: the area they are entitled to, the new units allotted to them and the benefits the developer pays, saved as a draft.

  • Rehab units as non-cash considerationConcept

    In a redevelopment the flats handed to society members are the price paid for the development rights; with the policy toggle on, the fair value of those rights is booked as land against a contract liability on the agreement date, and each member's offer earns its entitled-area share of that value as revenue when its allotted units are handed over.

  • Revenue recognition: policy, point in time vs over time, and revenue runsConcept

    Each set of books carries an effective-dated revenue policy (framework, method, possession trigger, cost and brokerage treatments, judgement areas) chosen by the CA; a revenue run is the period close that computes every booking's and member offer's progress under it, recognises the catch-up revenue, cost of sales and brokerage, and posts the journals.

  • Contract liability, contract asset and the transaction priceConcept

    A booking's transaction price is the sum of its charges treated "With the unit"; while revenue is deferred, demands for those charges are credited to a contract liability (billed ahead of revenue), a revenue run debits it as revenue is recognised, and revenue recognised ahead of billing sits in the contract asset.

  • Revenue policy cannot be changed or deleted: a posted run used it, or the settings do not fit the frameworkTroubleshooting

    A revenue policy that a posted revenue run has used stays as history and is changed by adding a new policy from a later date; a set of books always keeps one policy, two cannot start on the same date, and the significant financing component is only available under Ind AS 115 and needs a rate.

  • Revenue run cannot be started, posted or reversed: a draft exists, the period is out of order, or the status forbidsTroubleshooting

    Revenue runs on a set of books form a chain: one draft at a time, each run ending on or after the last posted one, and reversals from the latest run backwards; each action fits one status only.

  • Posting refused: no open fiscal year or period for the dateTroubleshooting

    Every posting, manual or automatic, needs a fiscal year of the books that covers its date, with the year open and the month's period unlocked; open the next year, unlock the period or reopen the year under Books, or move the document's date.

  • "No access" or "You do not have permission": your role lacks a permissionTroubleshooting

    Every screen, button and picker is gated by a permission on a module; your role decides which you hold, so a missing one shows as a No access card, a refused action, a greyed-out button with a hover reason, or a picker that explains which permission it needs.