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Accounting Policies

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Accounting Policies

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Accounting Policies

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Company1

Accounting Policies Revenue Recognition: Year 2009-10


SIGNIFICANT ACCOUNTING POLICIES 10. Revenue Recognition (a) Revenue from sale of products is recognized when all the signicant risks and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods and acceptance. Sales include excise duty and price variation and are recognized in terms of contracts with the customers. Sales exclude value added tax / sales tax, brokerage and commission. (b) Service income is recognized as per the terms of the contracts with the customers. (c) Revenue from contracts is recognized based on percentage of completion method after providing for foreseeable losses, if any. Percentage of completion is determined as a proportion of the costs incurred upto the reporting date to the total estimated cost to complete. (d) Interest income on deposits, securities and loan is recognized at the agreed rate on accrual basis. (e) Dividend income is accounted for when the right to receive is established.

Year 2008-09
SIGNIFICANT ACCOUNTING POLICIES 8. Revenue Recognition (a) Revenue from sale of products is recognized when all the significant risks and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods and acceptance. Sales include excise duty and price variation and are recognized in terms of contracts with the customers. Sales exclude value added tax / sales tax, brokerage and commission. (b) Service income is recognized as per the terms of the contracts with the customers. Revenue from contracts is recognized based on percentage of completion method after providing for foreseeable losses, if any. (c) Interest income on deposits, securities and loan is recognized at the agreed rate on accrual basis. (d) Dividend income is accounted for when the right to receive is established.

Year 2007-08
SIGNIFICANT ACCOUNTING POLICIES 8. Revenue Recognition (a) Revenue from sale of products is recognized when all the significant risk and reward of ownership of the products are passed on to the customers, which is generally on dispatch of goods and acceptance. (b) Service income is recognized as per the terms of the contract with the customer, when the related services are performed.

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Accounting Policies (c) Sales include excise duty and price variation and are recognized in terms of contracts with the customers. Sales exclude value added tax / sales tax, brokerage and commission. (d) Revenue from contracts is recognized based on percentage completion after providing for expected losses. (e) Excise duty in respect of finished goods is included in the valuation of finished goods. (f) Dividend income is accounted for when the right to receive income is established.

Analysis:
Only 1 change highlighted above in Year 2007-08 has been observed i.e. Excise duty in respect of finished goods is included in the valuation of finished goods. This was later deleted from the Annual Reports of Year 2008-09 & Year 2009-10.

Company2
Accounting Policies Revenue Recognition: Year 2009-10
SIGNIFICANT ACCOUNTING POLICIES III. Revenue Recognition a) Revenue/Income and Cost/Expenditure are generally accounted for on accrual as they are earned or incurred, Except in case of signicant uncertainties. b) Export Benets are recognized in the year of export. c) Share Issue Expenses are charged, rst against available balance in the Securities Premium Account. d) Sale of goods is recognized on transfer of signicant risks and rewards of ownership which is generally on the dispatch of goods. Export Sales are accounted for on the basis of the dates of On Board Bill of Lading.

Year 2008-09
SIGNIFICANT ACCOUNTING POLICIES III. Revenue Recognition a) Revenue/Income and Cost/Expenditure are generally accounted for on accrual as they are earned or incurred, Except in case of signicant uncertainties. b) Export Benets are recognized in the year of export. c) Share Issue Expenses are charged, rst against available balance in the Securities Premium Account. d) Sale of goods is recognized on transfer of signicant risks and rewards of ownership which is generally on the dispatch of goods. Export Sales are accounted for on the basis of the dates of On Board Bill of Lading. However, sales in respect of Floriculture division through foreign consignment agents are accounted for on the basis of the Account Sale Notes received from such agents.

Year 2007-08
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Accounting Policies SIGNIFICANT ACCOUNTING POLICIES III. Revenue Recognition a) Revenue/Income and Cost/Expenditure are generally accounted for on accrual as they are earned or incurred, Except in case of signicant uncertainties. b) Export Benets are recognized in the year of export. c) Share Issue Expenses are charged, rst against available balance in the Securities Premium Account. d) Sale of goods is recognized on transfer of signicant risks and rewards of ownership which is generally on the dispatch of goods. Export Sales are accounted for on the basis of the dates of On Board Bill of Lading. However, sales in respect of Floriculture division through foreign consignment agents are accounted for on the basis of the Account Sale Notes received from such agents.

Analysis:
Only 1 change highlighted above in Year 2007-08 & Year 2008-09 has been observed i.e. However sales in respect of Floriculture division through foreign consignment agents are accounted for on the basis of the Account Sale Notes received from such agents. This was later deleted from the Annual Reports of Year 200910.

Company3
Accounting Policies Revenue Recognition: Year 2009-10
SIGNIFICANT ACCOUNTING POLICIES c. Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. (i) Sale of telecommunications equipment Revenue is recognized on customer acceptance pursuant to sales order and when associated risks have passed to the customer. (ii) Service Revenue includes installation, adhoc and maintenance services. Installation and ad hoc revenues are recognized upon certification by the Project Manager that all service deliverables pursuant to the customers purchase order have been met. Maintenance revenue is recognized on a monthly basis over the life of the service contract and costs are recognized as an expense when incurred.

Year 2008-09
SIGNIFICANT ACCOUNTING POLICIES c. Revenue Recognition

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Accounting Policies Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. (i) Sale of telecommunications equipment Revenue is recognized on customer acceptance pursuant to sales order and when associated risks have passed to the customer. (ii) Service Revenue includes installation, adhoc and maintenance services. Installation and ad hoc revenues are recognized upon certification by the Project Manager that all service deliverables pursuant to the customers purchase order have been met. Maintenance revenue is recognized on a monthly basis over the life of the service contract and costs are recognized as an expense when incurred.

Year 2007-08
SIGNIFICANT ACCOUNTING POLICIES c. Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. (i) Sale of telecommunications equipment Revenue is recognized on customer acceptance pursuant to sales order and when associated risks have passed to the customer. (ii) Service Revenue includes installation, adhoc and maintenance services. Installation and ad hoc revenues are recognized upon certification by the Project Manager that all service deliverables pursuant to the customers purchase order have been met. Maintenance revenue is recognized on a monthly basis over the life of the service contract and costs are recognized as an expense when incurred.

Analysis:
No change has been observed

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