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AS Reporting- Goodnews!!

AS 263 views 1 replies

Hi,

We all understand that accounting standards act like facets to the holistic AS conceptual framework. Similarly, other conceptual frameworks like INDAS & IFRS. 

Lets look at this example in revenue recognition Transaction cost- Non Cash Consideration. Here Revenue is recognised when a performance obligation is satisfied. 

In AS 9.4.1- Revenue is measured by the charges made to customers for goods supplied and services rendered and by the charges and rewards arising from the use of resources by customers and clients.

Now clearly, when an AS company wants to use IndAS 66-69 revenue recognition principles like non cash consideration, the AS entity can use it by disclosing (AS 1.12) the accounting policy as long as there are no tax consequences. 

This ways, accountants can modify their treatments and achieve transparency on a large scale. 

Txs.

Replies (1)

Hey Yasaswi! That’s a solid insight you shared — really captures how AS companies can pragmatically align with Ind AS revenue recognition principles for better transparency while sticking to the framework.

To add:
The flexibility in AS 1.12 (Disclosure of Accounting Policies) indeed allows AS-reporting entities to adopt more refined recognition treatments (like non-cash consideration from Ind AS 115) — as long as it doesn’t conflict with tax laws or other statutory requirements.

This kind of practical blend helps bridge the gap between traditional AS and the newer, more nuanced Ind AS / IFRS, especially for companies transitioning or those wanting improved financial statement clarity without full Ind AS adoption.


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