Latest Post :
Home » , » Disclosure of excise duty

Disclosure of excise duty

Written By Admin on Monday, 2 September 2013 | Monday, September 02, 2013

ISSUE

1. What should be the manner of disclosure of excise duty in the presentation of revenue from sales transactions (turnover) in the statement of profit and loss.







CONSENSUS

2. The amount of turnover should be disclosed as per Accounting Standards Interpretation (ASI) -14 - "Disclosure of Revenue from Sales Transactions" in the following manner on the face of the statement of profit and loss:

Turnover (Gross)    XX
Less: Excise Duty   XX
Turnover (Net)       XX

3. The amount of excise duty to be shown as deduction from turnover as per paragraph 2 above should be the total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock. The excise duty related to the difference between the closing stock and opening stock should be recognised separately in the statement of profit and loss, with an explanatory note in the notes to accounts to explain the nature of the two amounts of excise duty.

BASIS FOR CONCLUSIONS

4. Financial analysts and other users of financial statements, sometimes, require the information related to turnover gross of excise duty as well as net of excise duty for meaningful understanding of financial statements. However, it was noted that some enterprises disclose turnover net of excise duty while others disclose turnover at gross amount. Accordingly, this Interpretation requires disclosure of turnover gross of excise duty as well as net of excise duty on the face of the statement of profit and loss.

5. The excise duty related to the difference between the closing stock and opening stock is not shown as deduction from turnover since it is not included in the turnover (gross. As per the interpretation, the excise duty related to the difference between the closing stock and opening stock is recognised separately in the statement of profit and loss.

6. As per the interpretation, two amounts of excise duty would be appearing in the statement of profit and loss: one as deduction from turnover and the other as a separate item in the statement of profit and loss. With a view to explain the nature of these two amounts of excise duty appearing in the statement of profit and loss, this Interpretation requires an explanatory note to be included in this regard in the notes to accounts.
Share this article :

0 comments :

Speak up your mind

Tell us what you're thinking... !

2500 + Subscribers

Get Toolbar

Get our toolbar!

Read article on Android Phone

Share your file

Forum

Get updates on Facebook

Popular Posts

 
Support : Creating Website | Johny Template | Mas Template
Copyright © 2011-2013. YourKnowledgeportal - All Rights Reserved
Original Design by Creating Website Modified by Adiknya
Blogger Widgets