AS-9 Revenue recognition

This query is : Resolved

Manisha (Querist)
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05 April 2009 We are selling power through IEX.We have to commit for power trading before one day. on 31st we have commited for giving power on 1st April. Whether we would recognise this income in 31st or in 1st April. Even if we reject for actual delivery on 1st but once we get revene for that and afterwards penalty will charge on us. Please suggest proper accounting.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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05 April 2009 revenue can be recognised only when it becomes reasonably certain that collection will be made...
so u need to see the agreement wat it says...
but i believe it should be recognised on 1st april as revenue generating event took place on 1st april...

Message likes : 1 times

CA Sanat Pyne

CA Sanat Pyne (Expert)
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22 April 2010 it should be recognised on 1st april.Because the event took place on 1st april.
Revenue does not recognise on the date of agreements but on the event occured.

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