Application of Ind As 115 for recognizing revenue.

Question

Accepted Answer

Ind AS 115 is a new revenue recognition standard that outlines a single comprehensive model for recognizing revenue from contracts with customers.

Ind AS 115 replaces the existing revenue recognition guidance in Ind AS 18 and Ind AS 11.
It requires entities to recognize revenue when control of goods or services transfers to the customer, rather than when the risks and rewards of ownership transfer.
The standard also requires entities to disclose more information about revenue, including the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
Examples of contracts that may be affected by Ind AS 115 include construction contracts, software licensing agreements, and service contracts.
Entities must apply Ind AS 115 to all contracts with customers, unless the contract is within the scope of another standard.
The standard also provides guidance on accounting for contract modifications, variable consideration, and costs of obtaining and fulfilling contracts.

Top Accenture Client Financial Management Specialist interview questions & answers