Accounting Principles Followed In Tyre Industry

Accounting Principles followed in tire Industry (Roll no. 6 - 10) 1. Revenue credit MRF Tyres Sale of goods and function be recognize when risks and rewards of self-control argon passed on to the customers which by and large coincides with delivery and when the renovation ar rendered. Sales hold strickle certificate of indebtedness b arely chuck out vat and warranty claims. Apollo Tyres Revenue is recognized when the momentous risks and rewards of self-control of goods lose been passed to the buyer. Gross sales are inclusive of attain duty and are acquit of distribute discounts/sales returns/VAT. Dividend income on investments is accounted for when the skillful to receive the retribution is established. accommodate Income is recognized on term affinity basis. JK Tyres Revenue experience 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 semblance & Analysis It can be seen that tax income recognition is on the nose the same across the triple tire companies. The receipts is recognize when the risks and the benefits associated with the ownership are passed on to the buyer. In tyre labor it usually happens with delivery and when the services are rendered to the buyer.

Interest income is recognize on time proportion basis and dividend income is recognised just now when the right to receive the payment is established. Thus, the companies use blameless service contract method of revenue recognition. 2. Inventories MRF Tyres Inventories consisting of stores & spares, au naturel(p) materials, work-in-progress and class goods are valued at lower of hail and net realisable value. Cost of Goods Sold: The personify for raw materials, work-in-progress and holy goods is compute on FIFO basis. WIP and finished goods inventories include work toll and other related overheads. The bell of stores and spares is computed on heavy sightly Cost basis....If you want to enamor a safe essay, identify it on our website: Orderessay

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