AS 9 Revenue Cut-off: A Goods and Services Evidence Checklist

Goods are dispatched on 30 March but accepted later; a service milestone is disputed. The useful result is a working that explains the facts, the calculation or classification, and the evidence behind the conclusion. This guide shows how to prepare that working and where a reviewer should investigate before accepting the result.

Scope and applicable period

Financial reporting for FY 2025–26 under the applicable Accounting Standards (AS) framework. Assess entity-specific applicability and relief. Ind AS requirements are a separate analysis.

Verification date: 11 October 2026. Figures and rates identified as assumptions are teaching examples; apply the stated conditions and the actual facts to a real assignment.

The key principle

Under AS 9, revenue recognition depends on the relevant goods or service recognition conditions, not invoice date alone. For goods, examine transfer of significant risks and rewards and retained control. For services, examine the applicable performance and measurement basis. Uncertainty about collection or an unresolved obligation can affect the analysis. This article assumes AS 9 applies, not Ind AS 115.

Worked example

If acceptance is a substantive condition, a March dispatch may not answer the recognition question. If acceptance is only routine confirmation, the analysis may differ. Read the contract, delivery record and actual performance evidence together. For a service milestone, document what work was completed and whether its consideration can be measured and collected under the applicable criteria. Keep the GST reporting dates separate from the accounting revenue conclusion.

A practical sequence

Read the sales or service arrangement and identify the relevant performance and transfer facts. Apply AS 9 when that is the entity’s framework, rather than importing Ind AS 115 terminology as an automatic replacement.

Reconcile invoices, advances and accrued revenue with supported recognition. Review cut-off around year end and significant uncertainty separately.

A receipt can represent an advance, and an invoice can remain unsupported by the recognition criteria; neither event settles the question alone.

Choose the framework before drafting the note

Recognition, measurement, presentation and disclosure are related but distinct. First establish whether the entity follows AS or Ind AS and whether company Schedule III or ICAI non-corporate guidance governs presentation. Then determine the accounting treatment and assemble the applicable disclosure. A well-formatted note cannot cure an unsupported asset, liability or income figure. Reconcile note schedules to the trial balance and preserve comparative information. Where relief applies to an entity, assess the particular standard or guidance rather than assuming that small size removes every requirement. Record significant judgement with the supporting facts.

Evidence checklist

Keep the following records linked to the same entity, period and working version. Identify missing items explicitly; a checked box should mean the document was examined and supports the stated conclusion.

• Goods/service contract and acceptance clauses
• Dispatch, delivery and performance evidence
• Invoice and milestone records
• Collection and measurement uncertainty assessment
• Revenue cut-off and GST timing bridge

Common mistakes and how to avoid them

• Recognising revenue solely from invoice date. Compare the conclusion with the goods/service contract and acceptance clauses and resolve any conflicting facts.
• Ignoring a substantive acceptance condition. Trace the affected item to the invoice and milestone records before finalising the working.
• Applying Ind AS 115 terminology as if it were AS 9. Use the revenue cut-off and gst timing bridge to make the final position and remaining exceptions clear.

Before you finalise

Recheck the example’s assumptions against the actual assignment, resolve the identified exceptions and make the final figure or conclusion traceable to its source. Preserve the reviewed version and the reason for material changes. For this task, the revenue cut-off and gst timing bridge should agree with the conclusion presented to the client, reviewer or authority.

Frequently asked question

Does GST liability automatically establish accounting revenue? No. GST timing and accounting recognition apply their own conditions.

Sources and further reading

• ICAI Accounting Standard AS 9
• ICAI AS 1 — Disclosure of Accounting Policies

Related guide: Year end accounting adjustments accruals prepayments cutoff.