What are the provisions of revenue recognition as per as 9?

As per the AS 9 Revenue Recognition issued by ICAI “Revenue is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of an enterprise from the sale of goods, rendering of services & from various other sources like interest, royalties & dividends”.

What is not included under the term revenue as per as 9?

However, this accounting standard does not deal with revenues resulting from: construction contracts. hire purchase or lease agreements. government grants and other such subsidies.

Which IND as is applicable for revenue recognition?

Ind AS 11 also requires the recognition of revenue on this basis. The requirements of that Standard are generally applicable to the recognition of revenue and the associated expenses for a transaction involving the rendering of services.

What is ASC revenue recognition?

ASC 606 is the new revenue recognition standard that affects all businesses that enter into contracts with customers to transfer goods or services – public, private and non-profit entities. Both public and privately held companies should be ASC 606 compliant now based on the 2017 and 2018 deadlines.

What is as7 accounting standards?

Accounting Standard 7 (AS 7) relates with accounting of construction contracts. The very purpose of this accounting standard is to specify the accounting treatment of revenue and costs associated with construction contracts.

What are the rules regarding revenue recognition?

GAAP Revenue Recognition Principles Identify the customer contract. Identify the obligations in the customer contract. Determine the transaction price. Allocate the transaction price according to the performance obligations in the contract.

When can you recognize revenue?

According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. In cash accounting – in contrast – revenues are recognized when cash is received no matter when goods or services are sold.

Is as 7 applicable to developers?

AS-7 is applicable to a “Contractor” and not to a “Developer”

What are 5 important steps in recognition of revenue in Ind AS 115?

Revenue recognition approach: Identify the contract(s) with a customer. Identify the separate performance obligations in the contract. Determine the transaction price. Allocate the transaction price to the separate performance obligations.

Which of the following is NOT covered by as 9?

Following transactions are also not covered under the definition of revenue as per AS 9: 1. Realised/unrealised gain resulting from disposal/holding of fixed assets. In other words gain arising from either sale of fixed assets or appreciation in the value of fixed assets.