GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following aspects of revenue recognition is not dealt by AS-9?
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Revenue arising from governments grants and other similar subsidies
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Revenue arising from hire-purchase, lease agreements
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Revenue arising from construction contracts
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All of the above
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Explanation:
Detailed explanation-1: -However, this accounting standard does not deal with revenues resulting from: construction contracts. hire purchase or lease agreements. government grants and other such subsidies.
Detailed explanation-2: -GAAP Revenue Recognition Principles Identify the obligations in the customer contract. Determine the transaction price. Allocate the transaction price according to the performance obligations in the contract. Recognize revenue when the performance obligations are met.
Detailed explanation-3: -Generally accepted accounting principles (GAAP) require that revenues are recognized according to the revenue recognition principle, a feature of accrual accounting.
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