Explain the rules of revenue recognition as per AS-9.

Rules of revenue recognition as per AS-9 (Revenue Recognition): Revenue should be recognised for sale of goods or services only when the collection is reasonably assured and (i) the property in goods is transferred from seller to buyer (ii) there is no uncertainty regarding the amount of consideration that will be realised from sale of goods. In the case of services rendered, either the completed service contract method or the proportionate service contract method may be adopted for revenue recognition. In the case of revenue by way of interest, the credit is taken on a time proportion basis taking into account the amount outstanding and the rate applicable. In the case of royalties, revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement. In case of dividend, once the right to receive dividend is established.