AS Reporting- Goodnews!!

yasaswi gomes (My grammar is 💯 good I)   (7290 Points)

03 May 2021  

Hi,

We all understand that accounting standards act like facets to the holistic AS conceptual framework. Similarly, other conceptual frameworks like INDAS & IFRS. 

Lets look at this example in revenue recognition Transaction cost- Non Cash Consideration. Here Revenue is recognised when a performance obligation is satisfied. 

In AS 9.4.1- Revenue is measured by the charges made to customers for goods supplied and services rendered and by the charges and rewards arising from the use of resources by customers and clients.

Now clearly, when an AS company wants to use IndAS 66-69 revenue recognition principles like non cash consideration, the AS entity can use it by disclosing (AS 1.12) the accounting policy as long as there are no tax consequences. 

This ways, accountants can modify their treatments and achieve transparency on a large scale. 

Txs.