Reliable Construction Limited is a real estate subcontractor. It completed some work for a large construction company for a consideration of ₹8 million. In addition to the work scope defined in the beginning, the company also did some extra work at the request of the client. The cost of the extra work came to ₹400,000. The company wants to add a margin of 25% on cost and invoice the client accordingly. However, the consideration for the extra work was never discussed with the client. The company is debating between the following accounting treatments: 

1. Recognize revenue now at ₹8.5 million (including ₹500,000 towards extra work). If the client does not accept the invoice for the extra work the same can be recorded as bad debts subsequently. 

2. Recognize revenue now at ₹8 million, that is, the agreed consideration. Revenue of ₹500,000 for extra work will be recognized once the client accepts the claim for the extra work. 

3. Postpone the entire revenue recognition of ₹8.5 million to a future date till a confirmation from the client is received.