What r the 5 steps in IND AS 115 for revenue recognition?

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Accepted Answer

The 5 steps in IND AS 115 for revenue recognition are: identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price, and recognition of revenue.

Step 1: Identification of the contract - Determine whether a contract exists with a customer.
Step 2: Identification of performance obligations - Identify the distinct goods or services that the company has promised to transfer to the customer.
Step 3: Determination of transaction price - Determine the amount of consideration the company expects to be entitled to in exchange for transferring the promised goods or services.
Step 4: Allocation of transaction price - Allocate the transaction price to the identified performance obligations based on their relative standalone selling prices.
Step 5: Recognition of revenue - Recognize revenue when (or as) the company satisfies a performance obligation by transferring a promised good or service to the customer.

Accepted Answer

Answered 5 steps of revenue recognition with an detailed example..I took an statutory audit example from my articleship experience.

What r the 5 steps in IND AS 115 for revenue recognition?

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