Topic: IAS-18 (Revenues)
IAS-18 deals with revenue, revenues recognition process and what to recognize and when to recognize? Different hypothetical situations that are near to real time circumstances of corporate world are given below. Read them carefully and highlight the amount of revenue(s) that should be recognized as per IAS-18 for each case separately:
- Delux company’s famous brand is ‘Xelon’ bearing retail price of Rs. 117 and prevailing general sales tax (GST) rate is 17%. The Company sold 100,000 units of ‘Xelon’ this year.
- Gross revenue of XYZ Company is Rs. 10 Million for the year 2014 whereas, Ledgers accounts of company are showing Rs. 2 Million discount offered to customers due to seasonal promotion.
- BCC Company is providing supplies to its corporate customers. A customer purchased the supplies of Rs. 2 Million and promised to clear his liability in one year. Prevailing discount rate is 16%.
Note: The answer of each question should not exceed 40 words.DOWNLOAD SOLUTION HERE