Revenue Recognition Accounting Standards

Revenue Recognition

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.

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Related Links: Accounting Help, Cost Accounting Help, Financial Accounting Help, Managerial Accounting Help


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