DEAR ALL, AN IMPORT OF EDIBLE OIL HAS BEING MADE VIDE CONTRACT TERMS CIFFO. NOW QUESTION IS WHEN THE PURCHASE HAS TO BE RECORDED IN BOOKS OF ACCOUNTS.
THNX..
CA Saroj Kumar
(Keen to learn something new every moments)
(2588 Points)
Replied 11 February 2014
Dear
As per general accpeted accounting mere agreemnet between client are not recorded in books of accounts however wehnever any advance paymnet/Received or any contractual obligation are arised then arise accounting treatment.
In case of import if u have arisen any contractual obligation then u should required to book liability or make provision for the liablility.
Mihir Manohar
(CA Final - Article Assistant)
(474 Points)
Replied 11 February 2014
Dear Mr. Shushant,
I am not gettting what terms do CIFFO signify? I am not finding it as any "Incoterm". Can you please elalorate it?
With reference to recording of the import purchase I am of the view that as per AS 9, it will be recorded as and when it becomes certain that all the risks and rewards of ownership are transferred to the importer and there does not exist any uncertainity about the transfer of its ownership.
If you feel my answer is helpful then please don't thank me by comment but hit the "Thank Button".
Mihir Manohar.
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