02-03-2005, 05:20 PM
First of all the debiting the stock (inventory) is not correct, as it doesnt come under the definition of stock,(IAS 2, p.6) secondly, the business of the company is redering services, so the revenue can be book if and only when the services are rendered, i.e. in above scenario the Receivables are collected by A company on behalf of B company. Fee to the extent of those collections can be booked. (IAS 18, P 20&21)
SMR
SMR
