Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
25 January 2012Friends
If a company has received an advance say during Fy 11-12 for rendering of service, should it transfer or how much to transfer to revenue on 31/03/2012 ? What are the factors to be considered ? I have gone through AS 9 but wanted to invite Your esteemed thoughts.
Regards,
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 27 January 2012
Dear Dipjyoti,
Two Methods specified in AS-9 for Rev Rec of Services rendering activities:- 1) Completed Contract basis & 2) Proporation Completion of Contract.basis.
Services provided should be measurable for the period under consideration.
CAclubindia
