Revision for Accounting Standards - CA Intermediate (Part 5)



Quick Summary
This article revises Accounting Standard 9 (AS 9) on Revenue Recognition for CA Intermediate students. It clarifies the conditions under which revenue should be recognised, focusing on the transfer of significant risks and rewards of ownership. The content also outlines scenarios where revenue recognition might be postponed due to uncertainties and highlights necessary disclosures.

AS 9 Revenue Recognition

AS 9 Revenue Recognition

AS 9 is Not Applicable For

AS 9 is Not Applicable For

When to recognise revenue?

  1. Significant Risk and Rewards of ownership is transferred
  2. Entity does not retain any Effective control Goods sold
  3. Cost can be reliably Measured
  4. Collection of the revenue is certain
  5. Stage of completion is measurable and is certain.
 

When one of the above is not certain then

Uncertainty

I. Revenue to be Recognised When there is Sale Of Goods

Revenue to be Recognised When there is Sale Of Goods

II. Revenue to be Recognised Services are Rendered

 Revenue to be Recognised Services are Rendered

 

III. Revenue to be Recognised In Various Cases

Revenue to be Recognised In Various Cases

Disclosures

In addition to the disclosures required by AS 1 on 'Disclosure of Accounting Policies', an enterprise should also disclose the circumstances in which revenue recognition has been postponed cause of significant uncertainties.

Also Read:


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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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