AS 9 Revenue Recognition Summary

Accounting Standard AS 9 Revenue Recognition


Compliance with the Accounting Standards as prescribed under section 211(3) of The Companies Act, 1956.

Accounting Standard (AS-9) – Revenue recognition

Accounting for sale of products must conform to AS – 9 issued by the Institute of Chartered Accountants of India.

  • A key criterion for determining when to recognize revenue from a transaction involving the sale of goods is that the seller has transferred the property in the goods to the buyer for a consideration. The transfer of property in goods, in most cases, results in or coincides with the transfer of significant risks and rewards of ownership to the buyer. 
  • When recognition of revenue is postponed due to the effect of uncertainties, it is considered as revenue of the period in which it is properly recognized.


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