Revenue Recognition as per Ind As 115

Question

Accepted Answer

Ind AS 115 provides a comprehensive framework for revenue recognition.

Revenue is recognized when control of goods or services is transferred to the customer.
Revenue is recognized at an amount that reflects the consideration the entity expects to receive in exchange for those goods or services.
Ind AS 115 requires entities to identify performance obligations in a contract and allocate the transaction price to each obligation.
Disclosure requirements under Ind AS 115 include qualitative and quantitative information about contracts with customers, significant judgments made in applying the standard, and assets recognized from costs to obtain or fulfill a contract.
Example: A software company recognizes revenue when the customer gains control of the software license, even if payment is received in installments.

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