Accouting standard 9 Revenue Recognition
This query is : Resolved
19 February 2008
As per AS 9 regarding Dividend declear on 30 th june 2007 & received on 15th July 2007
Can I show dividend on investment in P&L A/c for the year 2006-07 or Next year?
With best regards,
vilas Choudhari
Can I show dividend on investment in P&L A/c for the year 2006-07 or Next year?
With best regards,
vilas Choudhari
19 February 2008
When the owner's right to receive is established, the receipt can be recognised. If the dividend was declared in AGM, then you can be said to have a right to receive the dividend. If it is only in the Board meeting, you will have to wait till it is confirmed by AGM.
19 February 2008
Mr Vilas as the dividend is received in the financial year 2007-08, you cannot treat the same as income in the year 2006-07
19 February 2008
FROM INCOME TAX POINT OF VIEW , IT DEPENDS ON METHOD OF ACCOUNTING FOLLOWED BY YOU .........MERCANTILE OR CASH .
19 February 2008
Respected Jain sir,
Thanks for sending immediate reply
As per Query
As per AS 9 regarding Dividend declear on 30 th june 2007 in AGM of Company & received on 15th July 2007
Can I show dividend on investment in P&L A/c for the year 2006-07 or Next year?
Reply from your end
FROM INCOME TAX POINT OF VIEW , IT DEPENDS ON METHOD OF ACCOUNTING FOLLOWED BY YOU .........MERCANTILE OR CASH .
Sir
we followed mercantile system as per IT
Can I show dividend on income side for the
year 2006-07 ?
With best regards,
Vilas Choudhari
Respected Jain sir,
Thanks for sending immediate reply
As per Query
As per AS 9 regarding Dividend declear on 30 th june 2007 in AGM of Company & received on 15th July 2007
Can I show dividend on investment in P&L A/c for the year 2006-07 or Next year?
Reply from your end
FROM INCOME TAX POINT OF VIEW , IT DEPENDS ON METHOD OF ACCOUNTING FOLLOWED BY YOU .........MERCANTILE OR CASH .
Sir
we followed mercantile system as per IT
Can I show dividend on income side for the
year 2006-07 ?
With best regards,
Vilas Choudhari
19 February 2008
As per AS 9 dividend can be recognised as income in the year in which the right to receive the same is established. As per mercantile system also an income is said to accrue when the right to the same has arisen .In your case the right has arisen/established in the financeial year 2007-2008 and such the income will be recognised in that year only .
19 February 2008
Respected Sir,
Thanks very much for sending immediate reply
With best regards,
Vilas choudhari
Respected Sir,
Thanks very much for sending immediate reply
With best regards,
Vilas choudhari
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