In case of builders percentage of completion method (POCM) is mandatory under Income tax act. whether separate books of accounts are required as per percentage of completion method or financial statements (as per POCM) can be drawn only by changes in figures of traditional financial statements (balance sheets and p&l) prepared as per schedule VI.

Reply- As per AS 7- Construction Contracts financial statements Revenue is to be recoganized on the basis of stage of completion and ICDS III Construction Contracts  also recomend the same percentage of completion method 

Thus there should be no diffrence between financial statement as per AS 7 and ICDS III