Question 2 (c)
Revenue sources outside the scope of AS-9
4 marks
- Time to write
- About 8 minutes
- Notes
- Crux notes
Question
Question 2 (c) · 4 marksWrite down any four revenues sources where AS 9 does not apply.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Try it first. About 8 minutes for 4 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
AS-9 deals with the recognition of revenue arising in the course of the ordinary activities of an “enterprise from the sale of goods, the rendering of services, and the use by others of enterprise resources yielding interest, royalties and dividends”. Paragraph 2 of the Standard says it does not deal with the following aspects of revenue recognition, to which special considerations apply:
- Revenue arising from construction contracts: the Standard refers these to AS-7, Construction Contracts.
- Revenue arising from hire-purchase and lease agreements.
- Revenue arising from government grants and other similar subsidies.
- Revenue of insurance companies arising from insurance contracts.
AS-9 also lists items that are not "revenue" at all for its purpose: for example, realised or unrealised gains on non-current assets such as appreciation in the value of fixed assets, natural increases in herds and agricultural and forest products, and gains from changes in foreign exchange rates.
Where the 4 marks sit
| # | Component | Marks |
|---|---|---|
| 1–4 | Any four revenue sources outside AS-9, correctly identified | 4 × 1 = 4 |
| Total | 4 |
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