Accounting Policies of Vision Cinemas Ltd. Company

Mar 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Functional and presentation currency

Items included in these standalone financial statements of the Company are measured using the
currency of the primary economic environment in which the Company operates (i.e. the "functional
currency"). The standalone financial statements are presented in Indian Rupee, the national currency
of India, which is the functional currency of the Company.

(b) Investment In Subsidiary:

Investment in subsidiary company Is carried at cost less accumulated impairment losses, if any. Where
an indication of Impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments in subsidiary companies, associate
and joint venture companies, the difference between net disposal of proceeds and the carrying amounts
are recognised in the statement of Profit and Loss,

(c) Property, plant and equipment

Property, plant and equipment are measured at historical cost or its deemed cost less accumulated
depredation and impairment losses, if any. Historical Cost includes expenditures directly attributable to
the acquisition of the asset.

When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment. Subsequent
expenditure relating to property, plant and equipment is capitalized oniy when it is probahle that future
economic benefits associated with these will flow to the Company and the cost of the item can be
measured reliably. Repairs and maintenance costs are recognized in the statement of profit and toss
when incurred.

An item of property, piant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on
the disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of
Profit and Loss.

The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial year
end and adjusted prospectively, if appropriate.

Subsequent expenditure on additions and betterment of operational properties are capitalized, only if,
it is probable that the future economic benefits associated with the expenditure will flow to the
Company and expenditures for maintenance and repairs are charged to statement of Profit & Loss as
incurred,

(d) Oepreciation/ Amortisatiqn

Depreciable amount for assets is the cost of asset less its estimated residual value.

Depreciation has been provided on assets on the straight-line method, as per the useful life
prescribed in Schedule II of the Companies Act, 2013.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate. The Company assesses
at each Balance Sheet date whether there is objective evidence that a asset or a group of assets is
impaired. An asset''s carrying amount is written down immediately to its recoverable amount if the
asset''s carrying amount is greater than its estimated recoverable amount.

All the assets except building are at residual value as on 1st April, 2020 and hence depreciation is
provided only on building value amount.

The residual values are not more than 5% of the original cost of assets.

(e) Leases

From April 1, 2019, Ind AS 116 ''Leases'' is applicable to ail the listed companies. Ind AS 116 has certain
exemptions from the application of Ind AS - 116:

As per explanation and hooks of accounts provided to us, there are no lease payments done by the
company and as per the explanation provided to us, no lease agreements are entered Into by the
company,

(f) Financial Instruments

All financial instruments are recognised initially at fair value. Transaction costs that are attributable to
the acquisition of the financial asset (other than financial assets recorded at fair value through profit or
loss) are included in the fair value of the financial assets. Purchase or sale of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place
(regular way trade) are recognised on trade date. While, loans and borrowings and payables are
recognised net of directly attributable transaction costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the
following categories: non-derivative financial assets comprising amortised cost, debt instruments at fair
value through other comprehensive income(FVTOCI), equity instruments at FVTOCI or fair vaiue through
profit and loss account (FVTPL), non derivative financial liabilities at amortised cost or FVTPf. and
derivative financial instruments (under the category of financial assets or financial liabilities) at FVTPI.

The classification of financial nstruments depends on the objective of the business model for which it
is held. Management determines the classification of its financial instruments at initial recognition.

Non-derivative financial assets

i. Financial assets at amortised cost

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest (5PPI) on the principal amount outstanding.

They are presented as current assets, except for those maturing later than 12 months afterthe reporting
date which are presented as non-current assets. Financial assets are measured initially at fair value plus
transaction costs and subsequently carried at amortized cost using the effective interest rate method,
less any impairment loss.

Financial assets at amortised cost are represented by trade receivables, security deposits, cash and cash
equivalents, employee and other advances and eligible current and non-current assets.

Cash and cash equivalents comprise cash on hand and in banks and demand deposits with banks which
can be withdrawn at any time without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks
and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand,
book overdraft and are considered part of the Company''s cash management system.

ii. Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI)

For assets, if it is hetd within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and where the company has exercised the option to classify the
equity investment as at FVTOCI, all fair value changes on the investment are recognised in OCI. The

accumulated gains or losses on such investments are not recycled to the Statement of Profit and Loss
even on sale of such investment.

iii. Financial assets at Fair Value through Profit and loss (FVTPL)

Financial assets which Is not classified in any of the above category is measured at FVTPL. These Include
surplus funds invested ifn mutual funds etc.

Financial assets included within the FVTPL category are measured at fair values with all changes
recorded in the statement of profit and loss.

Non-derivative financial liabilities Financial liabilities at amortised cost

Financial liabilities at amortised cost represented by borrowings,, trade and other payables are initially
recognised at fair value, and subsequently carried at amortized cost using the effective interest rate
method. For trade and other payable maturing within one year from the Balance Sheet date, the
carrying value approximates fair value due to short maturity.

Financial liabilities at Fair Value through Profit and loss {FVTPL)

Financial liabilities at FVTPL represented by contingent consideration are measured at fair value with all
changes recognized in the statement of profit and loss.

Derivative financial instruments and hedging activities

A derivative is a financial instrument which changes value in response to changes in an underlying asset
and is settled at a future date. Derivatives are initially recognised at fair value on the date a derivative
contract is entered into and are subsequently re-measured at their fair value. The method of recognizing
the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and
if so, the nature of the item being hedged.

The Company enters into derivative contracts to hedge the risks asserted with currency fluctuations
relating to firm commitments and highly probable transactions. The Company does not use derivative
instruments for speculative purposes.

The Company documents, at the inception of the transaction, the relationship between hedging
instruments and hedged items, as well as its risk management objectives and strategy for undertaking
various hedging transactions. The Company also documents its assessment, both at hedge inception
and on an on-going basis, of whether the derivatives that are used in hedging transactions are effective
in offsetting changes in cash flows of hedged items.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash
flow hedges is recognised in Other Comprehensive income. The ineffective portion of changes in the fair
value of the derivative is recognised in the Statement of Profit and Loss.

Amounts accumulated in hedging reserve are reclassified to the Statement of Profit and Loss in the
periods when the hedged item affects the Statement of Profit and Loss.

The full fair value of a hedging derivative is classified as a current/ non- current, asset or liability based
on the remaining maturity of the hedged item.

When a hedging instrument expires, swapped orunwound, or when a hedge no longer meetsthe criteria
for hedge accounting, any cumulative gain or loss existing in Statement of Changes in Equity is
recognised in the Statement of Profit and Loss.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Qaiance Sheet when there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a
net basis or realize the asset and settle the liability simultaneously.

Fair value measurement

The Company classifies the fair value of its financial instruments in the following hierarchy, based on
the inputs used In their valuation:

I) Level 1 - The fair value of financial instruments quoted in active markets is based on their
quoted closing price at the Balance Sheet date.

ii) Level 2 - The fair value of financial instruments that are not traded in an active market is
determined by using valuation techniques using observable market data. Such valuation
techniques include discounted cash flows, standard valuation models based on market
parameters for interest rates, yieid curves or foreign exchange rates, dealer quotes for
similar instruments and use of comparable arm''s length transactions.

iii) Level 3 - The fair value of financial instruments that are measured on the basis of entity
specific valuations using inputs that are not based on observable market data (unobservable
inputs). When the fair value of unquoted instruments cannot be measured with sufficient
reliability, the Company carries such instruments at cost less impairment, if applicable.

(f) Employee Benefits

Salaries and wages paid to employees Is recognized as an expense at the undiscounted amounts in the
Statement of Profit and Loss of the year in which the related service is rendered.

The Company does not have any policy for deduction of professional Tax, Provident Fund, ESIC and/or
any other employee benefit plans.

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Mar 31, 2015

1.1 BASIS OF PREPARATION

The Consolidated financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under Historical Cost convention on accrual basis. GAAP comprises mandatory Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006.

1.2 PRINCIPLES OF CONSOLIDATION

The financial Statement of the Subsidiary company used in the consolidation are drawn up to the same reporting date as of the Company.

The Consolidated financial statements have been prepared on the following basis:

i. The Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the company's separate Financial Statements.

ii. The Consolidated of the financial statements of the holding company and its Subsidiary is done to the extent possible on a line by line bases by adding together like items of assets,liabilities,income and expenses;inter group transactions,balances and unrealized inter company profits have been eliminated in the process of consolidation.

iii. The excess of cost to the Company of its investments in subsidiary companies over its share of the equity of the subsidiary companies at the dates on which the investments in the subsidiary companies are made, is recognized as 'Goodwill' being an asset in the consolidated financial statements.Alternatively,where the share of equity in the subsidiary company as on the date of investment is in excess of cost of investment in the company,it is recognized as 'Capital Reserve' and shown under the head 'Reserves and Surplus', in the consolidated financial statement.

iv. Minority interest in subsidiary represents the minority shareholders proportionate share of net asset and net income.

1.3 USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include classification of assets and liabilities into current and non-current, estimates of the economic useful lives of fixed assets, provisions for bad and doubtful debts. Any revision to accounting estimates is recognised prospectively.

1.4 INVENTORY:

Stock in trade is valued at lower of cost or the closing rate as per the quotation of Recognized Stock Exchange as on the balance sheet date.

1.5 EVENTS OCCURING AFTER BALANCE SHEET DATE :

Material events occurring after the date of Balance sheet are taken into cognizance.

1.6 EXPENDITURE :

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

1.7 DEPRECIATION:

Depreciation is provided on straight line method on the basis of useful life of each asset setout under Schedule-II of the Companies Act, 2013 on a pro-rata basis.

1.8 REVENUE RECOGNITION:

a) Screening Income:

In cases where the Company has a formal contract with the advertiser or advertising agency, revenue is recognized as specified in the contract.In other cases, revenue is recognized after completion of screening of related advertisement.

b) Project Management/Development Income:

Income is recognized as and when the bill is raised.

1.9 TANGIBLE FIXED ASSETS:

- Fixed assets are stated at cost of acquisition including directly attributable costs for bringing the asset into intended use, less accumulated depreciation, amortization and impairment losses.

- Borrowing costs directly attributable to acquisition or construction of those Fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

- Expenditure directly relating to expansion is capitalized only if it increases the life or functionality of an asset beyond its original standard of performance.

1.10 INTAGIBLE ASSETS :

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight line basis over a period of 3 years, which is estimated to be the useful life of the asset.

1.11 INVESTMENTS:

Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such decline is not temporary in the opinion of the management.

1.12 EMPLOYEES RETIREMENT BENEFITS:

a. Short term employee benefits being all those benefits payable within 12 months of rendering the services such as salaries, house rent allowance & expected cost of bonus are recognised in the period in which the employee renders the related services.

b. Provident fund and Employee State Insurance: The company's contribution to the recognized Provident Fund and ESIC does not arise as the criteria for the number of employees as required by the respective Acts are not met.

c. Ex-gratia: Ex gratia payment to employees is accounted on payment basis

d. Gratuity: The company makes annual contributions to funds administered by trustees and managed by insurance companies for amounts notified by the said insurance companies. The company accounts for the net present value of its obligation for gratuity benefits based on an independent external actuarial valuation determined on the basis of the projected unit cash method carried out annually. Actuarial gains and losses are immediately recognized in the Profit and Loss Account. Provision in respect of leave encashment benefit is made based on accrual basis.

1.13 BORROWING COSTS :

Borrowing costs directly attributable to the acquisition or construction of qualifying fixed assets are capitalised as part of the cost of the assets, upto the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

1.14 LEASE:

Asset taken on Lease under which, all the risk and rewards of ownership are effectively retained by the lessor is classified as Operating Lease. Operating lease payments are recognized as an expense on accrual basis in accordance with the respective Lease Agreements under the head "Rent" in notes to statement of profit and loss.

1.15 EARNINGS PER SHARE:

Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity share outstanding during the period.

The number of shares used in computing Diluted Earnings per Share comprises the weighted average shares considered for deriving basic Earnings per Share, and also the weighted average number of Equity Shares that could have been issued on the conversion of all dilutive potential Equity Shares.

1.16 TAXES ON INCOME:

Tax expense comprises both current and deferred taxes. The current charge for income taxes is calculated in accordance with the relevant tax regulations. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.

Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

1.17 IMPAIRMENT OF ASSETS :

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with A.S-28 "Impairment of Assets" issued by MCA, where the recoverable amount of any fixed asset is lower than its carrying amount, a provision for impairment loss on Fixed asset is made for the difference, if any.

Since there is no Impairment loss recognized during the previous year, the effect for the same has not been given in the Financial Statements.

1.18 CONTINGENT LIABILITIES:

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company not acknowledged as debts are treated as contingent liabilities and the same is disclosed in notes.

The Company has only one class of shares referred to as equity shares having a par value of Re.1/-. Each holder of equity shares is entitled to one vote per share held.

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

Dividend, if approved, is payable to the shareholders in proportion to their shareholding. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company.

The distribution will be in proportion to the number of equity shares held by the shareholders.

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Jun 30, 2011

The financial statements are prepared on the accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

(a) Fixed assets and depreciation:

i) Fixed assets are stated at cost less accumulated depreciation.

ii) The Company capitalizes all costs relating to the acquisition and installation of fixed assets,

iii) Depreciation on fixed assets is calculated based on straight-line method, prorata to the period of use of assets in the manner specified in Schedule XIV to the Companies Act, 1956, at the rates prescribed there in.

(b) Retirement Benefits: Provident Fund & Employee State Insurance - The Company has not made any contributions towards such funds, as the provisions of the said act are not applicable. Gratuity - The Company has not made provision for Gratuity as none of the employees currently employed with the company have met the criteria as defined under the Gratuity Act of 1972. Leave Encashment - The Company does not have any policy for encashment of leave. Hence the company has not made any provision for leave encashment.

(c) Inventories: The Company has not carried any stock during and as at the end of the year and hence the question of valuation of inventories does not arise.

(d) Earnings Per Share:

i) Basic Earnings per share is calculated by dividing the net earning available to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

ii) Diluted Earnings per share is calculated by dividing the net earnings available to existing and potential Equity Shareholders by aggregate of the weighted average number of Equity Shares considered for deriving basic earnings per share.

(e) Income Recognition: Screening Income: In cases where the Company has a formal contract with the advertiser or advertising agency, revenue is recognized as specified in the contract. In other cases, revenue is recognized after completion of screening of related advertisement.

Project Management/Development Income:

Income is recognized as and when the bill is raised.

(f) Deferred Taxes:

The net result of the deferred tax is the Deferred Tax Asset. However, Deferred Tax Assets are not recognized on the unabsorbed business and depreciation losses as the company is not reasonably certain that there will be a sufficient- future taxable business income to recover such losses.

(g) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and the changes during the period in inventories and operating receivables and payables. The cash flows from regular revenue generating, investing and financing activities of the Company are shown separately.

(h) Impairment of Assets:

The Company assessed its fixed assets for impairment as at 30th June, 2011 and concluded that there has been no significant impaired fixed asset that needs to be recognized in the books of account.

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Jun 30, 2010

The financial statements are prepared on the accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

(a) Fixed assets and depreciation:

I. Fixed assets are stated at cost less accumulated depreciation.

II. The Company capitalizes all costs relating to the acquisition and installation of fixed assets.

III. Depreciation on fixed assets is calculated based on straight-line method, prorata to the period of use of assets in the manner specified in Schedule XIV to the Companies Act, 1956, at the rates prescribed there in.

(b) Retirement Benefits:

Provident Fund & Employee State Insurance - The Company has not made any contributions towards such funds, as the provisions of the said act are not applicable.

Gratuity - The Company has not made provision for Gratuity as none of the employees currently employed with the company have met the criteria as defined under the Gratuity Act of 1972.

Leave Encashment - The Company does not have any policy for encashment of leave. Hence the company has not made any provision for leave encashment.

(c) inventories:

The Company has not carried any stock during and as at the end of the year and hence the question of valuation of inventories does not arise.

Earnings Per Share:

i. Basic Earnings per share is calculated by dividing the net earning available to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

ii. Diluted Earnings per share is calculated by dividing the net earnings available to existing and potential Equity Shareholders by aggregate of the weighted average number of Equity Shares considered for deriving basic earnings per share.

(d) Income Recognition:

Screening Income:

In cases where the Company has a formal contract with the advertiser or advertising agency, revenue is recognized as specified in the contract.

In other cases, revenue is recognized after completion of screening of related advertisement.

Project Management/Development Income: Income is recognized as and when the bill is raised.

(e) Deferred Taxes:

The net result of the deferred tax is the Deferred Tax Asset. However, Deferred Tax Assets are not recognized on the unabsorbed business and depreciation losses as the company is not reasonably certain that there will be a sufficient future taxable business income to recover such losses.

(f) Cash Flow Statement :

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and the changes during the period in inventories and operating receivables and payables. The cash flows from regular revenue generating, investing and financing activities of the Company are shown separately.

(g) Impairment of Assets:

The Company assessed its fixed assets for impairment as at 30th June, 2010 and concluded that there has been no significant impaired fixed asset that needs to be recognized in the books of account.

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Jun 30, 2009

The financial statements are prepared on the accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

(a) Fixed assets and depreciation:

I. Fixed assets are stated at cost less accumulated depreciation.

II. The Company capitalizes all costs relating to the acquisition and installation of fixed assets.

III. Depreciation on fixed assets is calculated based on straight-line method, prorata to the period of use of assets in the manner specified in Schedule XIV to the Companies Act, 1956, at the rates prescribed there in.

IV. Depreciation on individual low cost assets (costing less than Rs.5, 000) is provided for in full in the year of purchase irrespective of date of installation.

(b) Retirement Benefits:

Provident Fund fr Employee State Insurance - The Company has not made any contributions towards such funds, as the provisions of the said act are not applicable.

Gratuity - The Company has not made provision for Gratuity as none of the employees currently employed with the company have met the criteria as defined under the Gratuity Act of 1972.

Leave Encashment - The Company does not have any policy for encashment of leave. Hence the company has not made any provision for leave encashment.

(c) Inventories:

The Company has not carried any stock during and as at the end of the year and hence the question of valuation of inventories does not arise.

(d) Earnings Per Share:

i. Basic Earnings per share is calculated by dividing the net earning available to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

ii. Diluted Earnings per share is calculated by dividing the net earnings available to existing and potential Equity Shareholders by aggregate of the weighted average number of Equity Shares considered for deriving basic earnings per share.

(e) Income Recognition:

Screening Income:

In cases where the Company has a formal contract with the advertiser or advertising agency, revenue is recognized as specified in the contract. In other cases, revenue is recognized after completion of screening of related advertisement.

Project Management Development Income:

Income is recognized as and when the bill is raised.

(f) Deferred Taxes:

The net result of the deferred tax is the Deferred Tax Asset. However, Deferred Tax Assets are not recognized on the unabsorbed business and depreciation losses as the company is not reasonably certain that there will be a sufficient future taxable business income to recover such losses.

(g) Fringe Benefit Tax :

Consequent to the introduction of Fringe Benefit tax effective April 1, 2005, in accordance with the guidance note on accounting for fringe benefit tax issued by the ICAI, the Company has made provision for Fringe Benefit Tax under Income taxes on accrual basis. (h) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and the changes during the period in inventories and operating receivables and payables. The cash flows from regular revenue generating, investing and financing activities of the Company are shown separately.

(i) Impairment of Assets:

The Company assessed its fixed assets for impairment as at 30th June, 2009 and concluded that there has been no significant impaired fixed asset that needs to be recognized in the books of account.