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April 2012

Deepak Fertilisers & Petrochemical Corporation Ltd. (31-3-2011)

By Himanshu Kishnadwala, Chartered Accountant
Reading Time 1 mins
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Revenue recognition:

Sales include product subsidy and claims, if any, for reimbursement of cost escalation receivable from FICC/Ministry of Agriculture/Ministry of Fertilisers.

Grants and subsidies from the Government are recognised when there is reasonable assurance of the receipt thereof on the fulfilment of the applicable conditions.

Revenue in respect of Interest other than on deposits, insurance claims, subsidy and reimbursement of cost escalation claimed from FICC/Ministry of Agriculture/Ministry of Fertilisers beyond the notified Retention Price and Price Concession on fertilisers, pending acceptance of claims by the concerned parties is recognised to the extent the company is reasonably certain of their ultimate realisation.

l Clean Development Mechanism (CDM) benefits known as carbon credit for wind energy units generated and N2O reduction in its nitric acid plant are recognised as revenue on the actual receipts of the applicable credits and estimated at prevailing realisable values.

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