Our Organisation in Business of Supply Chain Management of Agricultural Commodities.We are Purchasing the commodities on behalf of Client but title of goods with us till the date of delivery.We have charging interest @ 12% on Cost of Purchase of goods from client for diffrence in Date of Purchase to Date of Dispatch(i.e Sale/Transfer).Should we recongnise interest income for Unsettled transaction i.e Closing Stock of Purchase lying with us for our Sixmonthly Closing of Bookes of Account.Please clarify above issue using relevent Accounting Standard with examles. 
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urgent AS 9
Replies (1)
As per AS-9, revenue should be recognised when the property in goods has been transfered for a price and the seller retains no effective control over the goods.
In your case, the ownership is transferred at the time of delivery. Till such time, control over the goods remains with your company. Therefore, revenue should be recognised when the goods are delivered to client. Therefore, revenue should not be recognised for goods lying in stock in the current period.
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