Common use of Revenue Recognition Clause in Contracts

Revenue Recognition. 1) Income from Shares & Securities trading is recognized as income or loss on the date of actual trade. 2) Income in respect of derivative contracts are accounted in respect of expired contracts. 3) In respect of option contracts open as on balance sheet date, the net premium paid or received is carried forward to the balance sheet as financial assets or financial liabilities. The unrealized gain or loss measured on fair valuation is shown as financial assets or financial liabilities as per IND AS 109 Financial Instruments. 4) In respect of futures contracts open as on balance sheet date, the net mark to market paid or received is carried forward to the balance sheet as financial assets or financial liabilities. The unrealized gain or loss measured on fair valuation is shown as financial assets or financial liabilities as per IND AS 109 Financial Instruments. 5) The dividend income is accounted for when the right to receive the payment is established whereas, interest income and other income is accounted on accrual basis.