TaxTMI 
TaxTMI 
TREATMENT OF REVENUE IN COST STATEMENTS
X X X X Extracts X X X X
X X X X Extracts X X X X
....st statements. 2. Objective The objective of this standard is to bring uniformity and consistency in the principles and methods for treatment of revenue in cost statements with reasonable accuracy. 3. Scope This standard shall be applied to cost statements which require classification, measurement, treatment, assignment, presentation and disclosure of revenue including those requiring attestation. 4. Definitions The following terms are being used in this standard with the meaning specified. Any term not defined in this Standard shall have the same meaning and expression as set out in the Glossary of Terms issued by the Council. 4.1 By-product: Product with relatively low value produced incidentally in the manufact....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... • Gain on foreign currency transaction and translation (other than considered as finance cost); • Excess provisions written back; • Credits on account of revaluation of capital assets; • All items of abnormal revenue such as recoveries from book debts written off in the previous period; and • Prior period income. 4.7 Reporting Period: is the period for which the cost statements are prepared. 4.8 Revenue: The term Revenue will have the same meaning as assigned in the Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules 2006 or in the Indian Accounting Standards notified under the Companies (Indian Accounting Stan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dling) or reintroduced into the process in place of raw material. 4.12 Spoilage: Production that does not meet the quality requirements or specifications and cannot be rectified economically. 4.13 Waste: Material lost during production or storage and discarded material which may or may not have any value. Example of waste is hard waste and soft waste in textile industry. 5. Principles of Measurement 5.1 Revenue from sale of goods or services provided during a reporting period shall be measured based on the net sales realization. 5.2 Revenue from sale of joint products shall be measured separately for each main product or service sold. 5.3 Revenue from sale of goods or services shall b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oods or rendering of services shall be part of revenue from operations and shall be identified with each product sold or service rendered. 5.11 Any subsidy, grant, incentive or any such payment received or receivable to support the current operations of the entity other than those in the nature of capital grant and other than items referred in paragraph 5.10 above shall be treated as reduction in the related cost. Reference: • para 5.6 of CAS-3, Cost Accounting Standard on Production and Operation Overheads; • para 5.1.9 of CAS-6, Cost Accounting Standard on Material Cost; • para 5.8 of CAS-7, Cost Accounting Standard on Employee Cost; • para 5.8 of CAS-8, Cost Accounting....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ropriate preparation or presentation of cost statements of an entity. 6. Assignment of Revenue Revenue for each type of product or service shall be assigned directly to that product or service to the extent it is economically feasible. Economic feasibility implies that it is practically feasible to assign the revenue to a particular product or service with reasonable cost and efforts. Reasonable cost and efforts are matters of judgement. 7. Presentation 7.1 Net sales realization for each product or service shall be indicated separately for exports, domestic sales, manufactured goods, operations, and trading activities and matched against the cost of sales (net of duties) and margin of respective product or service. ....