as9 final ppt

7/25/2019 AS9 Final Ppt

1/15

Presented byPooja Duggal

Saloni ChellaniPrerna Choudhary

Punnet Hemdev

Apurva

Akhil1

AS 9 - R!"#RC$%"&'&$"


2/15

$()C'&!S

*

Re+ognition o, revenue in the statement o,prot and loss a++ount arising in the ordinary+ourse o, business i.e. ,rom

A.'he Sale o, %oods

(.'he Rendering o, Servi+es / and

C.'he use by $thers o, enterprise resour+es

yielding interest0 royalties and dividends.


3/15

APP&CA(&&'2

3

'his standard does not apply to

1. Revenue arising ,rom Constru+tion

Contra+ts.*. Revenue arising ,rom Hire Pur+hase or ease

Agreements.

3. Revenue arising ,rom %overnment %rants or

$ther Similar subsidies.

4. Revenue o, &nsuran+e Companies arising,rom insuran+e business.


4/15

D5&"&'&$"S

4

16 R!"#Revenue is the gross in7o8 o, +ash0 re+eivables orother +onsideration arising in the +ourse o,ordinary a+tivities o, an enterprise ,rom the sale o,

goods0 ,rom the rendering o, servi+es and ,romthe use by others o, enterprise resour+es yieldinginterest0 royalty and dividend. Revenue ismeasured by the +harges made to +ustomers or+lients ,or goods supplied and servi+es rendered

to them and by the +harges and re8ards arising,rom the use o, resour+es by them. &n an agen+yrelationship0 the revenue is the amount o,+ommission and not the gross in7o8 o, +ash0

re+eivable or other +onsideration.


5/15

D5&"&'&$"S

*6 C$:P'D SR!&C C$"'RAC'

Completed Servi+e Contra+t method is amethod o, a++ounting 8hi+h re+ognisesrevenue in the statement o, prot and loss only8hen the rendering o, servi+es under a+ontra+t is +ompleted or substantially+ompleted.

36 PR$P$R'&$"A' C$:P'&$" :'H$D

Proportionate +ompletion method is a methodo, a++ounting 8hi+h re+ognises revenue in thestatement o, prot and loss proportionately8ith the degree o, +ompletion o, servi+es undera +ontra+t.


6/15

A. SA $5 %$$DS

;

'he seller has trans,erred the property in thegoods to the buyer ,or a +onsideration.

'he trans,er o, property in goods in most +asesresults in or +oin+ides 8ith the trans,er o,

signi+ant risk and re8ard o, o8nership to thebuyer.

'here may be the +ase 8here trans,er o, propertyin goods does not +oin+ide0 the trans,er o,

signi+ant risk and re8ards o, o8nership. 'he time ,or re+ognising the revenue in both the

point no. * and 3 above0 is only 8hen the risks andre8ard o, o8nership is trans,erred to the buyer.


7/15

'he stages o, produ+tion and sales o, aprodu+er are as ,ollo8s=

Stage Acticity Costs to date NRV

A Ra8 material 1???? @???

( &P 1 1*??? 13???

C &P * 1??? 19???

D 5inishedprodu+t

1>??? 3????

5or sale 1>??? 3????

5 Sale agreed 1>??? 3????

% Delivered 1@??? 3????

H Paid ,or 1@??? 3????


8/15

hen to re+ognise the revenuein ,ollo8ing +asesB

@

1. Sales against advan+e payment re+eived.

hen ,ull or partial payment is re+eived ,or

the goods not presently held in sto+k i.e.sto+k is still to be manu,a+tured or is to bere+eived dire+tly by the +ustomer ,rom athird party. Revenue ,rom su+h sales should

not be re+ognised until goods aremanu,a+tured0 identied and ready ,ordelivery to the buyer by the third party.


9/15

hen to re+ognise the revenue in,ollo8ing +asesB

9

*. Delivery delayed at buyers reuest butbuyer a++epts titleEbilling.

'he seller should re+ognise the revenueeven i, goods are not dispat+hed providedthe goods are ready0 buyer takes title anda++epts billing and the seller holds the

goods in his premises on behal, o, buyeri.e. revenue is re+ognised 8hen risk andre8ard o, o8nership are trans,erred.


10/15


1?

3. (arter transa+tions

FRevenueG hen goods or servi+es aree


11/15


11

value o, goods or servi+es re+eived +an notbe measured reliably0 the revenue ismeasured at the ,air value o, the goods or

servi+es given up0 adjusted by the amount o,any +ash or +ash euivalent trans,erred.


12/15

(. R"DR&"% $5 SR!&CS

1*

Revenue ,rom the rendering o, servi+es +anbe re+ognised based on the ,ollo8ing t8omethods =

1. Proportionate Completion :ethod

Per,orman+e +onsist o, e


13/15

(. R"DR&"% $5 SR!&CS

13

*. Completed Servi+e Contra+t :ethod

Per,orman+e +onsist o, e


14/15

#se o, resour+es by others=

14

&nterest= Charges ,or the use o, +ashresour+esor amounts due to the enterprise.Revenue is re+ognised on ti0e proportion basis

Royalties= Charges ,or the usde o, su+h assestsas patents0 kno8 ho80 trade marks and+opyrights.Revenue is re+ognised on a++rualbasis

Dividends= Re8ards ,or the holding o,investments. Revenue is re+ognised hen theo8ners right to re+eive payment is established.


15/15

1

'HA"I2$#J

as9 final ppt

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