will it be according to the revenue recognition concept. Since our company accounting system is mercantile system.
one thing I also want to know that at what point we can say we have recognize this revenue - at the end of the quarter when bank will credit the interest into our account
or at the end of the month when we provide the interest by our own calculation.
31 August 2013
yes. it is according to revenue recognition concept only. bank credit may happen quarterly or yearly. but the interest need to be accounted as accrual basis in monthly. once you put the fixed deposits with the fixed rate of interest, you can calculate the interest on your own and provide the books and quarterly when the bank gives credit, you can match your calculation with the credit
in this case when it will be deemed that income is recognized - at the time of bank credit or at the month end when the provision for accrued income will made.
CAclubindia
