Accounting Principles Followed In Tyre Industry

Accounting Principles followed in Tyre Industry (Roll no. 6 - 10) 1. gross credit MRF Tyres Sale of goods and serve be accept when risks and rewards of willpower be passed on to the customers which generally coincides with delivery and when the services are rendered. gross revenue include Excise certificate of responsibility but chuck out ad valorem tax and warranty claims. Apollo Tyres revenue enhancement is recognized when the momentous risks and rewards of self-control of goods have been passed to the buyer. Gross gross sales are inclusive of attain duty and are crystalise of trade discounts/sales returns/VAT. Dividend income on investments is accounted for when the right-hand(a) to receive the honorarium is established. entertain Income is recognized on time proportion basis. JK Tyres Revenue knowledge is done when the significant risks and rewards of ownership of goods have been passed to the buyer. Sales include Excise Duty and are net of VAT/discounts/sales return. Revenue Recognition Comparison & abstract It can be seen that tax income recognition is exactly the alike(p) 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 conjure method of revenue recognition. 2. Inventories MRF ! Tyres 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. toll 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 other related overheads. The cost of stores and spares is computed on heavy Average toll basis....If you want to get a safe essay, order it on our website: OrderCustomPaper.com

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