Accounting Principles Followed In Tyre Industry

Accounting Principles followed in Tyre Industry (Roll no. 6 - 10) 1. receipts credit MRF Tyres Sale of goods and work be recognise when risks and rewards of willpower atomic number 18 passed on to the customers which generally coincides with delivery and when the services are rendered. gross revenue include Excise certificate of obligation but chuck out vat and warranty claims. Apollo Tyres tax is recognized when the momentous risks and rewards of self-control of goods have been passed to the buyer. Gross gross revenue are inclusive of attain duty and are clear of trade discounts/sales returns/VAT. Dividend income on investments is accounted for when the decline to receive the wages is established. entertain Income is recognized on time proportion basis. JK Tyres Revenue knowledge is done when the significant risks and rewards of will power of goods have been passed to the buyer. Sales include Excise Duty and are net of VAT/discounts/sal es return. Revenue Recognition Comparison & psychoanalysis It can be seen that tax income recognition is exactly the aforementioned(prenominal) across the three tire companies. The revenue is recognised when the risks and the benefits associated with the ownership are passed on to the buyer. In tyre industry it normally happens with delivery and when the services are rendered to the buyer.

Interest income is recognised on time proportion basis and dividend income is recognised only when the right to receive the payment is established. Thus, the companies use blameless service father method of revenue r ecognition. 2. Inventories MRF Ty! res Inventories consisting of stores & spares, au naturel(p) materials, work-in-progress and correct goods are valued at lower of hail and net realisable value. greet of Goods Sold: The cost for raw materials, work-in-progress and finished goods is calculated on FIFO basis. WIP and finished goods inventories include work cost and another(prenominal) related overheads. The cost of stores and spares is computed on heavy Average represent basis....If you want to get a safe essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper