Accouting standard 9 Revenue Recognition

This query is : Resolved

Pawan Patil (Querist)
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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

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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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.

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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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

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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19 February 2008 FROM INCOME TAX POINT OF VIEW , IT DEPENDS ON METHOD OF ACCOUNTING FOLLOWED BY YOU .........MERCANTILE OR CASH .

Pawan Patil

Pawan Patil (Querist)
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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

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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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 .

Pawan Patil

Pawan Patil (Querist)
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19 February 2008
Respected Sir,

Thanks very much for sending immediate reply

With best regards,

Vilas choudhari

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