Skip to content

CA Final · Financial Reporting · Ind AS 115 Revenue from Contracts with Customers

Kaveri Auto Components Ltd sells goods and its revenue figure in the statement of profit and loss is inclusive of excise duty collected on its sales. Which presentation is required under Ind AS 115 as notified in India?

Under the Indian version of Ind AS 115, an entity must present separately, in the statement of profit and loss, the amount of excise duty included in the revenue recognised. It cannot be hidden by netting, nor moved to other comprehensive income or notes on contingencies.

  1. AExcise duty must be netted off and not shown anywhere
  2. BExcise duty may be shown only in the notes on contingent liabilities
  3. CThe amount of excise duty included in revenue recognised must be presented separately in the statement of profit and lossCorrect
  4. DExcise duty must be shown as a separate component of other comprehensive income

Explanation

Ind AS 115 as notified in India includes para 109AA, which requires the entity to present separately the amount of excise duty included in the revenue recognised in the statement of profit and loss. Netting it off silently or placing it in OCI or contingent liability notes does not satisfy this.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 115 Revenue from Contracts with Customers shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 115 Revenue from Contracts with CustomersFree diagnostic mock

More Ind AS 115 Revenue from Contracts with Customers questions