Revenue recognition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2010 Lease rent relates with last year we received in this current year so in accounts how can we treat is there is any standard rules that previous years income we cant recongnise in this year or there is no such accounting rules.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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26 March 2010 if you follow mercantile system of a/cing then make a provisional entry for lease rent receivable as on 31/3/--,

if follow case system then recognize when received.

no, any standard rules that previous years income we can't recognize in this year or there is no such accounting rules, but as per AS -5, if amt. is material then show separately as prior period items.