What is ind as 115

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What is ind as 115

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Ind AS 115 is a revenue recognition standard that outlines the principles for recognizing revenue from contracts with customers.

Ind AS 115 is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled.
It replaces the existing revenue recognition guidance in Ind AS 18 and Ind AS 11.
The standard provides a five-step model for recognizing revenue: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations, and recognize revenue when (or as) the entity satisfies a performance obligation.
Examples of performance obligations include the delivery of goods, rendering of services, or granting of licenses.
Ind AS 115 aims to improve comparability of revenue recognition practices across different industries and jurisdictions.

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