## AS 9 – Revenue Recognition: Scope
AS 9 governs revenue recognition from ordinary business activities, but explicitly excludes the following:
| Excluded Area | Governed By |
|---|---|
| Construction contracts | AS 7 |
| Lease agreements | AS 19 |
| Government grants | AS 12 |
| Gains/losses on sale of non-current assets (PPE, Intangibles) | AS 10 / AS 26 |
| Gains/losses from foreign exchange fluctuations | AS 11 |
> Key nuance on asset sales: If a fixed asset is normally held for use but is sold as an exceptional transaction, AS 9 does not apply. However, if a business ordinarily sells such items (i.e., they are inventory for that business), the sale is covered by AS 9.
### Types of Revenue covered by AS 9
```
Revenue
├── Sale of Goods
├── Rendering of Services
└── Other Sources
├── Interest
├── Royalties
└── Dividends
```
Revenue = Gross inflow of cash or receivables arising from ordinary course of activities.