Revenue recognation

Hello am Appu,

My Opininon regarding Topic as follows

In the business enterprise when revenue of sale of good should be recognised it is depends up on satisfying following conditions. All these conditions must be satisfied to recognise income in books of accounts.

• Seller should have transferred the ownership of goods to purchaser for the consideration or all significant risk & rewards of ownership should have transferred to buyer.


• There should not be any kind of uncertainty for collection or receipt of cash, consideration or receivable etc.


• Seller does not retain any direct or effective control on such goods transferred.


• I think it must be benficial for you.....

As per para 11 of Accounting Standard -9 :Revenue Recognition  - Revenue in case of sale of goods should be recognised only when:

1. the seller of goods has transferred to the buyer the property in the goods for a price or all significant risks have been transferred to the buyer

2.No significant uncertainity exists regarding receipt of consideration of goods sold.