2017 · Q56
In case of gold, revenue is recognized in the accounting period in which the gold is
General Accounting Principles, Auditing and InsuranceRecording transactions
- Adelivered
- Bsold
- Cmined
- Didentified to be mined
Explanation
Under Indian GAAP revenue-recognition practice (the AS-9 framework and its standard exceptions), revenue is normally recognised on transfer of risks and rewards at sale. Gold is the classic exception: because it has an assured ready market and price, revenue is recognised in the accounting period in which the gold is mined, not when delivered or sold. Hence C.