Accounting Principles Followed In Tyre Industry - Essay by Prashant1542

TOP ESSAY WRITING SERVICES REVIEWS


Rank
Service
General
Prices

1
  • Since 2008
  • Free revisions
  • Money-back guaranty
  • Up to 5% for the first order. Up to 15% for the orders starting from 2nd

from $9.97/pp

visit site

2
  • Since 2009
  • Free title page, revisions
  • Discount policy
  • Satisfaction guarantee
  • More than 100 000 orders delivered

from $9.97/pp

visit site

3
  • Since 2010
  • PhD holding authors only
  • SMS notifications & VIP support
  • Discount policy

from $22/pp

visit site

4
  • Since 2010
  • 24/7 support team
  • More than 500 writers
  • Money-back guaranty
  • Up to 15% discounts

from $9.97/pp

visit site

 

My Account
Anti Essays

Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Accounting Principles Followed In Tyre Industry Essay

Open Document

Below is an essay on "Accounting Principles Followed In Tyre Industry" from Anti Essays, your source for research papers, essays, and term paper examples.

Accounting Principles followed in Tyre Industry (Roll no. 6 - 10)

1. Revenue Recognition

MRF Tyres

Sale of goods and services are recognised when risks and rewards of ownership are passed on to the customers which generally coincides with delivery and when the services are rendered. Sales include Excise Duty but exclude VAT and warranty claims.

Apollo Tyres

Revenue is recognized when the significant risks and rewards of ownership of goods have been passed to the buyer. Gross sales are inclusive of excise duty and are net of trade discounts/sales returns/VAT. Dividend income on investments is accounted for when the right to receive the payment is established. Interest Income is recognized on time proportion basis.

JK Tyres

Revenue recognition 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 & Analysis

It can be seen that revenue recognition is exactly the same across the three tyre 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 usually 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 Completed service contract method of revenue recognition.

2. Inventories

MRF Tyres

Inventories consisting of stores & spares, raw materials, work-in-progress and finished goods are valued at lower of cost and net realisable value. Cost 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 labour cost and other related overheads. The cost of stores and spares is computed on Weighted Average Cost basis....

Show More


Related Essays

Citations

MLA Citation

"Accounting Principles Followed In Tyre Industry". Anti Essays. 21 Nov. 2017

<http://anties.wressy.com/free-essays/Accounting-Principles-Followed-In-Tyre-Industry-108941.html>

APA Citation

Accounting Principles Followed In Tyre Industry. Anti Essays. Retrieved November 21, 2017, from the World Wide Web: http://anties.wressy.com/free-essays/Accounting-Principles-Followed-In-Tyre-Industry-108941.html