What is Ind AS 115 and what are its key provisions?

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Accepted Answer

Ind AS 115 is a new revenue recognition standard that replaces existing revenue recognition standards.

Ind AS 115 is based on the principle that revenue should be recognized when goods or services are transferred to customers at the amount the entity expects to be entitled to.
It introduces a five-step model for revenue recognition: identify the contract, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations, and recognize revenue as the performance obligations are satisfied.
The standard also requires enhanced disclosures about revenue recognition policies, judgments, and estimates.
Examples of changes under Ind AS 115 include the timing of revenue recognition for long-term contracts, multiple-element arrangements, and variable consideration.
Ind AS 115 aims to provide a more consistent and comprehensive framework for revenue recognition across different industries and geographical locations.

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