Accounting Satndard 9
This query is : Resolved
17 March 2009
Is raising an invoice a prerequisite for recording Income. A Company, as per agreement, has recorded revenue in March, however the invoice was raised in April (thus 2 different accounting years). The Company has applied the provisions of AS 9 and all the risks and rewards are transferred to the purchaser but invoice was not generated. So keeping in mind the concept of Substance over Form, is the recording of Income correct. Will the answer differ if there is no agreement.
17 March 2009
Another condition is their in AS-9 to be fulfilled:
"no significant uncertainty exists regarding the amount of the consideration
that will be derived from the sale of the goods".
So, unless the invoice is raised, the amount of consideration for sale is not certain. Buyer may ask for the rate prevailing on the date of raising invoice. However, if agreement is there and the consideration is mentioned there, then the recording is fulfilling the condtion of AS-9
"no significant uncertainty exists regarding the amount of the consideration
that will be derived from the sale of the goods".
So, unless the invoice is raised, the amount of consideration for sale is not certain. Buyer may ask for the rate prevailing on the date of raising invoice. However, if agreement is there and the consideration is mentioned there, then the recording is fulfilling the condtion of AS-9
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- TAN for Partnership
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- E way bill for tractors
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Taxation on LTCG for property sold after 24JUL2024
- TDS related Query_Liquidated Damages
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
