Accounting Satndard 9

This query is : Resolved 

17 March 2009 Is raising an invoice a prerequisite for recording Income. A Company, as per agreement, has recorded revenue in March, however the invoice was raised in April (thus 2 different accounting years). The Company has applied the provisions of AS 9 and all the risks and rewards are transferred to the purchaser but invoice was not generated. So keeping in mind the concept of Substance over Form, is the recording of Income correct. Will the answer differ if there is no agreement.

17 March 2009 Another condition is their in AS-9 to be fulfilled:
"no significant uncertainty exists regarding the amount of the consideration
that will be derived from the sale of the goods".

So, unless the invoice is raised, the amount of consideration for sale is not certain. Buyer may ask for the rate prevailing on the date of raising invoice. However, if agreement is there and the consideration is mentioned there, then the recording is fulfilling the condtion of AS-9



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries