IND AS 115 - Revenue From Contracts With Customers

Question 1

Impairment loss as per Ind AS 115 shall be recognised in

1: Other Comprehensive Income

2: Profit or Loss

3 : Contract Assets

4: Other Reserves

Answer 1

Profit or loss

Question 2

Which of the following criteria is not correct in case of identification of contract with the customer to be accounted for under Ind
AS 115?

1: the parties to the contract have approved the contract in writing only

2: the entity can identify each party@s rights regarding the goods or services to be transferred

3 : the entity can identify the payment terms for the goods or services to be transferred

4 : the contract has commercial substance

Answer 2

The parties to the contract have approved the contract in writing only

Question 3

Which of the following cost shall be recognises as an asset while obtaining a contract with a customer if the entity expects to recover those costs

1 : Sales commission

2 : General and administrative costs

3 : Costs of wasted materials, labour or other resources

4 : Costs that relate to past performance

Answer 3

Sales commission

Question 4

Where the penalty is inherent in determination of transaction price of a contract, it shall form part of

1: Fixed consideration

2 : Variable consideration

3 : Non-cash consideration

4 : Not included in consideration

Answer 4

Variable Consideration