Institute of Chartered Accountants of India

E-commerce is the activity of electronically buying or selling of products or online services over the internet. The online transactions can be conducted via mediums like computers, tablets, and smartphones. Most of the transactions are being done through online mode being ease in doing transactions by the consumers. In the above scenario, there was need felt for providing guidance for recording transactions conducted online.

Research Committee had already issued ‘Guidance Note on Accounting by Dot-com companies’ which dealt with accounting issues related to dot-com companies. Moreover, a need was felt to revise the above guidance note and provide more guidance in the form of e-commerce entities. The Committee has out come out with a revised guidance in the form of ‘Guidance Note on Accounting by E-commerce entities’ which deals with accounting by ecommerce entities in respect of certain issues relating to revenue and expense recognition. The revised guidance note deals with key issues of e-commerce entities and aims at providing guidance on various accounting issues unique to e-commerce. This Guidance Note applies to companies preparing financial statements under Companies (Accounting Standard) Rules 2006, as amended under Section 133 of the Companies Act, 2013. It also applies to entities such as LLPs, Partnership firms.

Download Guidance Note on Accounting by E-commerce Entities

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February 2021