Prithi (Student) (166 Points)
16 June 2011Hey Guys
Can u pls tell me if a subsidiary company fails to raise the invoice as per the contractual agreement on the parent company, will it be said that it is a non compliance with AS 9 (Revenue Recognition).... If that value of unbilled portion is taken as unbilled revenue then will it still continue to be non compliance with AS 9..
Please make it fast its urgent
Thx in Advance for your help
ashish gupta
( student)
(1922 Points)
Replied 16 June 2011
Raising invoice is not a requirement of AS-9 . If sales has actually been made you should book the revenue. But there should be a voucher in all cases to support the transaction.
CA Shahrukh khan
(Assistant Manager)
(72 Points)
Replied 16 June 2011
Hi..guys
it is wiithin the purview of AS-9 and we can book the revenue as Unbilled revenue and after that for our documentation & evidenice purpose on behalf of which entry is passed in the books of account should be raise as invoice on holding company.
for the purpose of AS-9 it is more important for booking the revenue that "significant risk and rewards are transfered to buyer" so if significant risk and reward trasfer to holding company than subsidiary can book the revenue.
Viren
(Chartered Accountant)
(137 Points)
Replied 17 June 2011
| Originally posted by : Shahrukh khan | ||
 |
Hi..guys it is wiithin the purview of AS-9 and we can book the revenue as Unbilled revenue and after that for our documentation & evidenice purpose on behalf of which entry is passed in the books of account should be raise as invoice on holding company. for the purpose of AS-9 it is more important for booking the revenue that "significant risk and rewards are transfered to buyer" so if significant risk and reward trasfer to holding company than subsidiary can book the revenue. |
 |
AGREED
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