File Content -
CA. Praveen Tawania
The only book that balance your books
SUPER SUMMARY AS-9
Purpose:
Recognizing revenue arising in the course of the ordinary activities of the enterprise.
Scope:
The SALE of goods.
The RENDERING of services.
The USE BY OTHERS of
enterprise resources yielding
interest, royalties and dividends.
Non-Applicability:
Revenue arising from construction contracts.
Revenue arising from hire -purchase, lease agreements.
Revenue arising from government grants and other similar subsidies.
Revenue of insurance companies arising from insurance contracts.
Revenue Revenue is the gross inflow of cash, receivables or other
consideration arising in the course of ordinary activities of an
enterprise from:
The sale o f goods,
The rendering of services, and
The use by others of enterprise resources yielding interest,
royalties and dividends.
REVENUE
RECOGNITION IN
SALE OF GOODS
The PROPERTY in GOODS in TRANSFERRED for a PRICE.
1 Accounting Standards (For any query Whatsapp No. +91 9910026755)
CA. Praveen Tawania
The only book that balance your books
All significant RISKS AND REWARDS have been
TRANSFERRED and no effective control is retained.
NO significant UNCERTAINTY EXISTS regarding the
amount of consideration.
It is reasonable to EXPECT ULTIMATE COLLECTION of
consideration.
REVENUE
RECOGNITION IN
RENDERING OF
SERVICES
Service is recognised either on COMPLETED SERVICE or
PROPORTIONATE COMPLETION METHOD.
No significant uncertainty exists regarding amount of
consideration.
It is reasonable to expect ultimate collection of consideration.
Completed service method recognizes revenue only when
service complete or substantially complete. In such cases there
is more than one act involved and revenue is recognised on
execution of all those acts.
Proportionate completed method recognizes revenue
proportionate with the degree of completion of services.
In such cases there is more than one act involved and revenue
is recognised on execution of certain acts.
REVENUE
RECOGNITION IN
USE OF
ENTERPRISE
RESOURCES BY
OTHERS
Interest: Revenue is recognized on the time basis
determined by the amount outstanding and the rate
applicable.
Royalty: Revenue is recognized in accordance with the terms
of the relevant agreement (accrual basis).
Dividends: Revenue is recognized only when a right to
receive payment is established.
DISCLOSURE
REQUIREMENTS
When recognition of revenue is postponed due to the effect of
uncertainties, an enterprise should disclose the circumstances
in which revenue recognition has been postponed.
2 Accounting Standards (For any query Whatsapp No. +91 9910026755)
CA. Praveen Tawania
The only book that balance your books
KIND ATTENTION CA/CS/CMA Students
AS -6 HAS BEEN DELETED AND CHANGES IN OTHER AS
The Central Government, in consultation with N ACAS, m akes Companies (Accountin g
Standards) Amendments Rules, 2016 in which, there are changes in AS-2, AS-4, AS-10, AS-
13, AS-14, AS-21, AS-29. AS-6 has been deleted. WAITING FOR OFFICIAL NOTIFICATION .
3 Accounting Standards (For any query Whatsapp No. +91 9910026755)
CAclubindia
