CA Pratik Dharod (Bussiness) (178 Points)
16 December 2010Dear sir.
When to recognise revenue in CIF transaction where contract is document through bank in export sales????
Date of invoice - 21/9/2010
Date of goods dispatched - 29/9/2010
Date of Bill of leding - 11/10/2010
Date of payment - 9/11/2010
And on what date foreign exchange convertion rate is to be taken????
JITENDRA KUMAR DHINGRA
(Executive)
(93 Points)
Replied 16 December 2010
Salee should be recognised on the date when goods have been dispatched. for determination of amount of sale in converted currency, exchange rate on that date should be taken.
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 16 December 2010
In my opinion & as per AS-09 sale transaction should be recorded when risk and reward trasfred to third party with whom transaction was entered and consideration become certain for such sale.
and regarding foreign exchange, rate should be taken when payment was actuly made.
Regards
M.s.kabra
CAclubindia
