In the previous articles, we have given as 9 revenue recognition and as 14 accounting for amalgamation. However, there is no specific guidance on how to allocate transaction price. Revenue from sales or service transactions should be recognised when the requirements as to performance set out in paragraphs 11. Mar 15, 2010 revenue recognition after delivery revenue recognition is deferred when collection of sales price is not reasonably assured and no reliable estimates can be made the two methods that are used are. The recognition of revenue on this basis provides useful information on the extent of service activity and. Recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Income computation and disclosure standard iv icds 4 relating to revenue recognition corresponding to as9 issued by the icai preamble.
The ind as implementation committee of the institute of chartered accountants of india icai. Quick revision notes for as9 accounting standard 9 for ca, icwa students. Quick revision notes for as 9 accounting standard 9 for ca, icwa students. Revenue from sale of goods should be recognised when the requirements as to performance as set out in the standard are satis ed. As9 prescribes the accounting treatment of revenue arising from certain types of. As9 for revenue recognition is mainly concerned with timing of recognition of revenue in the profit and loss account, amount of revenue arising on a transaction and. Accounting standard as 9, revenue recognition, deals with recognition of revenue from. Icai is a regulatory body set up under an act of parliament 1949 2.
Cbdts revised icds 4 relating to revenue recognition ca club. As 7 accounting for construction contracts revised notes. Ca vikas oswal accounting for construction contract as7 revised2002 1 applicability of the standard applied in accounting for construction contracts in the financial statements of contractors. As 7 issued 1983, accounting for construction contracts. Revenue from sales or service transactions should be recognised when the requirements as to performance set out in paragraphs 11 and 12 are satisfied, provided that at the time of performance it is not unreasonable to expect ultimate collection. Accounting standard as 09 revenue recognition notified by nacas as9 notified by nacas national advisory committee on accounting standards is same as accounting standard as 9 revenue recognition issued by icai.
Accounting standards issued by the icai icai the institute of. As 9 revenue recognition applicability this as lays down fundamental principles of revenue recognition. Accounting standard or as 9 defines revenue as 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, from the rendering of services, and from the use by others of enterprise resources yielding interest. If the fundamental accounting assumptions of going concern, consistency and accrual are. This income computation and disclosure standard is applicable for computation of income chargeable under the head profits and gains of business or profession or income from other sources and not for the purpose of maintenance of books of accounts. Ind as 18 requires the recognition criteria to be applied to the separately identifiable components of a single transaction to reflect the substance of the transaction.
No part of the contents available in any icai publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or. Indian accounting standard ind as 18 revenue contents paragraphs objective scope 16 definitions 78 measurement of revenue 912 identification of the transaction sale of goods 1419 rendering of services 2028 interest, royalties and dividends 2934 disclosure 3536 appendices a revenuebarter transactions involving. Ca vikas oswal accounting for construction contract as7 revised2002 1 applicability of the standard. Accounting standard as 09 revenue recognition notified by nacas as9 notified by nacas national advisory committee on accounting standards is same as accounting standard as 9 revenue recognition issued by icai as. For the purpose of proper treatment of recognition of income in books of account and uniformity accounting system icai the institute of chartered accountants of india has issued accounting. Contracts, revised 2002 and as9 revenue recognition, read with other accounting standards, such as as2valuation of inventories, as16borrowing costs, as accounting for investments etc. Icai 2006 gnrecognition and measurement 020220 once the conditions as. Accounting standard for local bodies aslb 9, revenue from exchange transactions accounting standard for local bodies aslb 11, construction.
These exposure drafts are in line with the requirements of the corresponding international financial reporting standards ifrs ifrs 9, financial instruments and ifrs 15, revenue from contracts with customers, the international accounting standards board iasb has recently issued. Member card trace a member list of firms as on 1st april 2018. As 9 revenue recognition as issued by icai practical question and answers on a. Icai, representatives from assocham, cii, ficci, etc.
Contracts revised 2002 as 8 accounting for research and development as 9 revenue recognition. Examples of items not included within the definition. Accounting standard as 3 cash flow statements pdf download. Guidance note on accounting for real estate transactions for entities to whom ind as is applicable the institute of chartered accountants of india set up by an act of parliament. Recognition of revenue by real estate developersas 9 vs as 7 presenter. Paragraph 4 of as 9 defines, revenue as the gross inflow of cash, receivables, or. Icofr to meet assurance requirements management certification 10. Revenue recognition pwc 2 revenue recognition the future is here in may 2014, the international accounting standards board iasb and financial accounting standards board fasb issued their longawaited converged standard on revenue recognition. Oct 01, 2016 cbdts revised income computation and disclosure standard iv icds 4 relating to revenue recognition applicable from the ay 201718 corresponding to as9 issued by the icai. Compendium of aslbs 90 accounting standard for local bodies aslb 9 revenue from exchange transactions this accounting standard includes paragraphs set in bold italic type and plain type. The ind as implementation committee of the institute of chartered accountants of india icai has issued revised education material on ind as. By its name it name it implies that it is a more of a measurement standard than a disclosure. Guidance note on accounting for real estate transactions.
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. These standards are required to be adopted by the ifrs and us gaap reporters from 1 january 2018. Accounting and auditing update in this edition revenue recognition in the pharmaceutical sector. Download accounting standard 9 revenue recognition file. As9 revenue recognition as issued by icai practical question and answers on a. Real estate regulations as 7 as 7 construction contractsconstruction contracts as 9 as 9 revenue recognition where in substance revenue recognition where in substance similar to delivery of goods guidance note on accounting for real estate guidance note on accounting for real estate transactions by icai transactions by icai. All this income should be properly recorded in books of accounts of the business enterprise or organisation.
Goodwill9 9 9 9 9 9 9 income taxes uncertain tax positions 9 9 9 9. Ind as 18 revenue summary indian accouting standard. Though the as is small, many issues evolve therefrom in our day. The standard also provides principles for presentation of revenue.
This statement deals with the bases for recognition of revenue in the statement of profit and loss of an enterprise. Amendment to as 2, 4, 6, 10, 14, 21 and 29 issued by the institute of chartered accountants of india, pursuant to issuance of amendments to accounting standards by the mca september 2016 accounting standards withdrawn vide 360th meeting of the council held on november 7 9, 2016. As 9 explains the timing for recognition of revenue in the nancial statements and also state the circumstances under which revenue recognition should be postponed. This income computation and disclosure standard is applicable for computation of income chargeable under the head profits and gains of business or profession or income from other sources and not for the purpose of maintenance of books of. As per the as 9 revenue recognition issued by icai revenue is the gross inflow of cash, receivables or other consideration arising in the. Positive impact on revenue and costs through innovations 8. Download indian accounting standard 18 revenue summary in pdf issue by icai. Guidance notes on accounting aspects icai the institute of. Accounting standard for local bodies aslb 9 revenue from.
Accounting standard as 3 cash flow statements revised pdf. The cash flow statements has issued by the institute of chartered accountants of india icai. The core principle of ifrs 15 is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Boardcbdt the central board of direct taxes constituted under the central boards of revenue act, 1963 9.
Icai clarifies on ind as 115 recognition of revenue. It 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, from the rendering of services, and from the use by others of enterprise resources yielding interest, royalties and dividends. Accounting standards for local bodies icai the institute of. As 9 deals with sale of goods rendering of services. The definition of both revenue and income excludes contributions from or distribution to owners. Guidance note on accounting for real estate transactions for entities to whom ind as is applicable the following is the text of the guidance note on accounting for real estate transactions, issued by the council of the institute of chartered accountants of india for entities to whom ind as is applicable. Indian accounting standards icai the institute of chartered. Icai is established under the chartered accountants act, 1949 act no. It is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of an enterprise from. Accounting standard interpretation icai the institute of chartered. Accounting standard or as 9 defines revenue as revenue is the gross inflow of cash, receivables or other consideration. Asi 14, disclosure of revenue from sales transactions re as 9. List of accounting standards as 2 of icai download pdf copy jul 1. Income computation and disclosure standard icds iv relating to revenue recognition preamble.
As 9 revenue recognition revised summary notes pdf. Major differences between draft as 18 and ind as 18 are. Withdrawal of the announcement issued by the council on. As 21, as 23 and as 27 asi 9, virtual certainty supported by convincing evidence re.
Accounting standard for local bodies aslb 9 revenue from exchange transactions contents paragraphs objective scope 110 definitions 11 revenue 12 measurement of revenue 1417 identification of the transaction 18 rendering of services 1927 sale of goods 2832 interest, royalties and dividends 3338 disclosure 3940 appendices. It may be noted that paragraphs 3537 of ind as 115 explicitly. Revenue recognition pwc 2 revenue recognition the future is here in may 2014, the international accounting standards board iasb and financial accounting standards board fasb issued their. Technical guide on revenue recognition for software.
Icai the institute of chartered accountants of india. Accounting for construction contract as7 revised2002 1. As9 accounting standard 9 simplified short notes revenue recognition. As 11 construction contract and indas 18 revenue recognition indas 115 is applicable from 1. Applicability of accounting standards icai the institute of. Here we have provided all the information for tulsians financial accounting text book.
Ifrs 15 revenue from contract with customers icai dubai. How to recognise revenue as per as9 revenue recognition. Exposure draft of the updated accounting standard as 18, revenue, issued by the accounting standards board of the icai, for comments. Archives icai the institute of chartered accountants of india. For the purpose of proper treatment of recognition of income in books of account and uniformity accounting system icai the institute of chartered accountants of india has issued accounting standard 9 which revenue recognition. Fy 201819 the core principle of ind as 115 is that revenue needs to be recognized when the entity transfers control of goods and services to customers at an amount that entity expects to beentitled.
The statement is concerned with the recognition of revenue arising in the course of the ordinary. Icai the institute of chartered accountants of india set up by an act of parliament. Permits on pcm basis for recognition of revenue from service transactions to. Indian accounting standard ind as 18 revenue this indian accounting standard includes paragraphs set in bold type and plain type, which have equal authority. Similarly, major differences between draft as 18 and as 9 are given in appendix 2 of draft as 18.
Recognition of revenue from service transactions as 9 permits both the methods of revenue recognition. As9 for revenue recognition is mainly concerned with timing of recognition of revenue in the profit and loss account, amount of revenue arising on a transaction and influence of uncertainties existing regarding the determination of the amount, or its cost on timing of revenue recognition. This statement deals with the bases for recognition of revenue in the. Applicable gaap in india 020220 as 9 revenue recognition. This is the best notes on accounting standard 9 revenue recognition with examples. Current as 9 does not require revenue from contracts to be separately allocated to different elements. Accounting for sales tax exemption benefit under ind as. List of accounting standards as 2 of icai download. Permits on pcm basis for recognition of revenue from service transactions to reduce litigation and alternatives,only pcm is recommended icds permits only pcm,except where the duration of the contracts is revenue from contracts with customers ed on revenue. As9 accounting standard 9 simplified short notes revenue. A company should recognise revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to. As 9 explains the timing for recognition of revenue in the nancial statements.
Major differences between draft as 18 and ind as 18 are given in appendix 1 of draft as 18. List of accounting standards as 2 of icai download pdf. By its name it name it implies that it is a more of a measurement standard than a. Jul 21, 2018 in view of the above, the icai would like to clarify that the ind as 115 does allow recognition of revenue using percentage of completion method pocm and has explicit and specific requirements to recognise revenue, where performance obligation is satisfied over a period of time. When such consideration is not determinable within reasonable limits, the recognition of revenue is postponed. Fy 201819 the core principle of ind as 115 is that revenue needs to be recognized. Technical guide on accounting issues in the retail sector. Guidance note on accounting for oil and gas producing activities ind as. Ind as 18 requires the recognition criteria to be applied to the separately identifiable components of a. Standard as 9, revenue recognition, notified under the companies accounting standards rules, 2006, revenue has been defined as follows.
No part of the contents available in any icai publication may be reproduced, stored in a retrieval system, or. What and when to credit profit and loss account is determined by this as. Presently, retention money is excluded in computing taxable income on the premise that. Alignment of other laws to support the revenue model of ifrs 15.
1460 1142 255 1486 433 1135 1396 1482 833 757 884 1434 1452 55 871 458 157 1380 777 1005 1118 1159 1214 1026 1368 401 593 1021 757 105 1353 1323 352 1085 230 168 495 211 1409 364 788 516 912 787 890