tushar jain (Service) (107 Points)
24 February 2009HI I have a query, if company sells goods through distributor,then when it should recognise revenue, a)at time of sale to distributir, b)at the time when distributors sells to final customer., as per AS-9 it should be (b). please explain in detail
Thanks in advance ..
Rahul Gupta
(CA Final Student)
(1780 Points)
Replied 25 February 2009
Hi tushar
As per AS-9
Revenue from such sales can generally be recognised if significant risks of ownership have passed; however in some situations the buyer may in substance be an agent and in such cases the sale should be treated as a consignment sale.
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