Introduction & Objective
AS-9 is mandatory in nature. It deals with the bases for recognition of revenue in the statement of P&L.
The statement is concerned with the recognition of revenue arising in the course of the ordinary activities of the enterprise from:
(i) Sale of Goods and receipts from rendering of services.
(ii) The use by the others of enterprise resources yielding interest, royalties and dividends.
(iii) It does not deals with:
v Revenue from construction Contracts
v Revenue from hire purchase, lease agreements.
v Government grants & subsidies
v Revenue of insurance companies arising from insurance contracts.
v Realized or Unrealized gain from disposal or holding of non-current assets
v Unrealized gains from the holding of current assets & the natural increase in agriculture or forest produce.
v Realized or Unrealized foreign exchange gains
v Realized gains or unrealized gains from the discharge/restatement of an obligation.
Posted by Expertsmind.com –