Page 101 - IC26 LIFE INSURANCE FINANCE

14] Guaranteed sales of agricultural crops

- When sale is assured under forward contract or government guarantee, the crops can be recognised at net

realizable value although it does not satisfy the criteria of revenue recognition.

The above accounting standard is not applicable for:

 Revenue arising from construction contracts

 Revenue arising from hire purchase, lease agreements

 Revenue arising from Government grants and subsidies

 Revenue of Insurance companies arising from insurance contracts

 Profit or loss on sale of fixed assets

 Realised or unrealized gains resulting from changes in foreign exchange rates

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010