treatment of non refundable security deposit

This query is : Resolved

hrithvik raj (Querist)
Follow

14 December 2009 a co. sells set top box on receiving security deposit. the security deposit is non refundable. plz advice whether the security deposit will be treated as revenue recognition or will it be split over a period of time... your answer should be based on AS..

CA.Balakrishnam.V

CA.Balakrishnam.V (Expert)
Follow

14 December 2009 As per AS.9 until Risk & Reward associated with the good is transfer to buyer, Revenue cannot be recognised, at the same it cannot be split over a period becoz as per AS.12 if a monetary grant is received which is subject to fullfilment of any obligation, until such conditions are satified such deposit as to be show as asset. In this case until the good is transfer to the buyer, show as Deposit later adjust with sale amount.

hrithvik raj

hrithvik raj (Querist)
Follow

18 December 2009 thankz a lot sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

MUNISH KUMAR

nandeesh mashyal

madhu Reddy

Shailesh Prajapati

Credible HRM

Subscribe Now

treatment of non refundable security deposit

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Article Assistant

Accountant

GST CONSULTANT

GST CONSULTANCY