Disclosure

An enterprise should disclose the circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

Revised ASI 14, Disclosure of Revenue from Sales Transactions (Re.: AS 9):

The amount of turnover should be disclosed in the following manner on the face of the statement of profit and loss:

  • Turnover (Gross)        XXXXX
  • Less: Excise Duty        XXXXX
  • Turnover (Net)            XXXXX

The amount of excise duty to be shown as deduction from turnover should be the total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock. The excise duty related to the difference between the closing stock and opening stock should be recognised separately in the statement of profit and loss, with an explanatory note in the notes to accounts to explain the nature of the two amounts of excise duty.

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