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

Kaveri Textiles Ltd. reports under Ind AS. In its financial statements for the year, it earned Rs 9,00,000 as revenue from contracts with customers and Rs 1,50,000 as rental income from a property let out under an operating lease. During the year it also recognised an impairment loss of Rs 20,000 on trade receivables arising from customer contracts. Which presentation is consistent with the disclosure requirements of Ind AS 115?

Revenue from contracts with customers must be disclosed separately from other sources of revenue such as rent, and impairment losses on receivables or contract assets from customer contracts must be shown separately from impairment losses on other contracts, unless already presented separately in the statement of profit and loss.

1. ADisclose Rs 9,00,000 as revenue from contracts with customers separately from the Rs 1,50,000 of other revenue, and disclose the Rs 20,000 impairment loss on contract receivables separately from impairment losses on other contractsCorrect
2. BCombine the Rs 9,00,000 and Rs 1,50,000 into a single revenue figure of Rs 10,50,000 with no separate disclosure
3. CDisclose revenue from contracts with customers separately but merge the Rs 20,000 impairment loss with impairment losses from all other contracts
4. DDisclose the Rs 20,000 impairment loss separately but include rental income within revenue from contracts with customers