Indian Accouting

Indian Accounting Standard (Ind AS) 18 Revenue Contents

Objective Scope Definitions Measurement of revenue Identification of the transaction Sale of goods Rendering of services Interest, royalties and dividends Disclosure

1–6 7–8 9–12 13 14–19 20–28 29–34 35–36

Paragraphs

Appendices A Revenue—Barter Transactions Involving Advertising Services Customer Loyalty Programmes

B

C D

Transfers of Assets from Customers References to matters contained in other Indian Accounting Standards

E

Illustrative examples

Sale of goods

Rendering of services Interest, royalties and dividends Recognition and measurement Comparison with IAS 18, Revenue

1

2

Indian Accounting Standard (Ind AS) 18 Revenue

(This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles. )

Objective

Income is defined in the Framework for the Preparation and Presentation of Financial Statements issued by the Institute of Chartered Accountants of India as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. Income encompasses both revenue and gains. Revenue is income that arises in the course of ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends and royalties. The objective of this Standard is to prescribe the accounting treatment of revenue arising from certain types of transactions and events. The primary issue in accounting for revenue is determining when to recognise revenue. Revenue is recognised when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. This Standard identifies the circumstances in which these criteria will be met and,...