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An entity has highly seasonal revenue (peak in December). Under Ind AS 34, how should it report 6-month interim FS?
ADefer all seasonal revenue until year-end
BSpread the seasonal revenue uniformly across the year for interim purposes
CAnticipate the seasonal revenue at the start of the year
DRecognise revenue when earned (when seasonal peaks occur); supplementary disclosure of 12-month financial information up to the interim date may be useful
Answer & Solution
Correct answer: D. Recognise revenue when earned (when seasonal peaks occur); supplementary disclosure of 12-month financial information up to the interim date may be useful
Seasonal revenue is recognised when earned — not anticipated or deferred. For highly seasonal businesses, Ind AS 34 suggests supplementary 12-month-rolling financial information may be useful but not required.
Related questions
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