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128
Accounting Standard (AS) 9
(issued 1985)
Revenue Recognition
Contents
INTRODUCTION Paragraphs 1-4
Definitions 4
EXPLANATION 5-9
Sale of Goods 6
Rendering of Services 7
The Use by Others of Enterprise Resources Yielding Interest,
Royalties and Dividends 8
Effect of Uncertainties on Revenue Recognition 9
ACCOUNTING STANDARD 10-14
Disclosure 14
APPENDIX
The following Accounting Standards Interpretation (ASI) relates to AS 9:
 Revised ASI 14 - Disclosure of Revenue from Sales Transactions
The above Interpretation is published elsewhere in this Compendium.
122 AS 9 (issued 1985) Revenue Recognition 129
Accounting Standard (AS) 9
(issued 1985)
Revenue Recognition
(This Accounting Standard includes paragraphs 10-14 set in bold italic
type and paragraphs 1-9 set in plain type, which have equal authority.
Paragraphs in bold italic type indicate the main principles. This
Accounting Standard should be read in the context of the Preface to the
Statements of Accounting Standards1.)
The following is the text of the Accounting Standard (AS) 9 issued by
the Institute of Chartered Accountants of India on ‘Revenue Recognition’.2
In the initial years, this accounting standard will be recommendatory in
character. During this period, this standard is recommended for use by
companies listed on a recognised stock exchange and other large commercial,
industrial and business enterprises in the public and private sectors.3
Introduction
1. This Statement deals with the bases for recognition of revenue in the
statement of profit and loss of an enterprise. The Statement is concerned
with the recognition of revenue arising in the course of the ordinary activities
of the enterprise from
— the sale of goods,4
...