Recognition when the production is completed. It is generally recognised that income accrues only at the time of sale and gain should not be anticipated by reflecting assets at their current market prices. However, in case of certain industries where products have an immediate marketability at more or less fixed prices, the revenue may be recognised as soon as the production is completed, The amount of income earned is the excess of the estimated sale prices of the products completed over the costs oftheir production or extraction. However, any expenditure incurred in the disposal of these products should be charged to such income and should be disclosed fully in the financial statements. This is particularly true in case of precious metals such as gold and silver and extractive industries (e.g. oil) and agriculture. In case of these industries, the inventories are staled at sales prices.

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