05 March 2018
1) If a football league receives sponsorship money from its related party, how should sponsorship money be accounted in the books of account of the Sponsor and the receiver of the sponsorship ?
2) Under what section is TDS required to be done on the payments made to the players ? Does it make any difference if the players are not residents of India as per Income Tax provisions ?
06 March 2018
Measurement at Recognition 4. Income shall be recognised at the fair value of the sponsorship received or receivable. 5. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 6. Sponsorships in the form of services may be measured by referring to either the fair value of the services received or the fair value of the asset or the asset enhancement resulting from the services. A possible proxy on the fair value of the services received will be the consideration that would have to be paid by the SB if it had purchased the service. Obligations Arising from Sponsorships 7. An expense shall be recognised at recognition of the sponsorship received or receivable. The amount to be recognized should be the best estimate of the expenditure required to settle the present obligation from the sponsorship in accordance with paragraph 6. Extract from Accounting for Sponsorships Received SB-FRS Guidance Note 7 Accounting for Sponsorships Received applies to Statutory Boards from annual periods beginning on or after 1 January 2017.
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