Explain Ind as 115? Explain 5 step model of ind as 115

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Ind AS 115 is a revenue recognition standard that outlines a 5-step model for recognizing revenue.

Ind AS 115 is a converged standard that replaces the existing revenue recognition guidance in Ind AS 18 and IAS 18.
The 5-step model of Ind AS 115 includes: identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price to performance obligations, and recognition of revenue when performance obligations are satisfied.
For example, if a company enters into a contract to sell a product and provide maintenance services, it needs to identify the separate performance obligations and allocate the transaction price accordingly.
Ind AS 115 provides specific guidance on various scenarios such as variable consideration, warranties, licenses, and contract modifications.
The standard aims to provide a more consistent and comprehensive framework for revenue recognition across industries and improve comparability of financial statements.

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