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CMA Final · Corporate Financial Reporting · Revenue from Contracts with Customers (Ind AS 115)

Kaveri Textiles Ltd's statement of profit and loss does not separately show impairment of receivables. Notes reveal impairment of Rs 22,000 on contract assets from customers, Rs 18,000 on trade receivables from customers, and Rs 9,000 on an advance to a director. What must be disclosed under paragraph 113(b) for customer contracts?

Rs 40,000 must be disclosed separately. Paragraph 113(b) covers impairment on both receivables and contract assets from customer contracts (22,000 + 18,000), and the Rs 9,000 director advance is excluded because it is not from a customer contract.

  1. ARs 40,000 separately from other impairment lossesCorrect
  2. BRs 49,000 as a single impairment figure
  3. CRs 22,000 only, since receivables are covered elsewhere
  4. DRs 18,000 only, since contract assets are excluded

Explanation

Paragraph 113(b) covers impairment on both receivables and contract assets arising from customer contracts: 22,000 + 18,000 = 40,000. The director advance of Rs 9,000 is not from a customer contract and is disclosed separately from it.

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