Can someone tell me what all documents to refer for point of recognition of sale.
Actually in case of domestic sales, we consider the point of despatch as revenue recognition point.What is the logic? Is it correct as per IFRS and Indian GAAP?
For export sales, for CIF sales, we reverse the sales for which Bill of Lading is not yet made. I want to know the correctness and logic for this as well.
29 July 2009
Domestic Sales: Proof of documents are Sales Invoice/Delivery challen/Courier Airway bill if it is sent by courier etc. Here the point to be noted is the Date mentioned in documents.
Export Sales: Its bill of lading date is considered as sales.
The logic behind this is till you make the bill of lading the liability lies with you. Its as good as the materials are lying in your stores, for which you are not suppose to book the profit element.
CAclubindia
