WE ARE PROVIDING COMPUTER NETWORKING SERVICES AND WE TAKE SERVICE CHARGES FOR UPCOMING FIVE YEAR AND WE TAKE ALL SEVICE CHARGES IN ADVANCE I WANT TO KNOW THAT WE HAVE TO SHOW THIS INCOME IN FIRST YEAR OR IN FIVE YEAR
21 July 2011
You have to show it on year to year basis. Revenue should be recognised when accrued. This is because of the "matching concept" of accounting.
CAclubindia
