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

Meera Engineering Ltd. presents in its statement of profit and loss only a single line 'Revenue from operations' of Rs 12,00,000. This includes Rs 10,40,000 from contracts with customers, Rs 1,20,000 of lease income and Rs 40,000 of interest income. It also has Rs 15,000 impairment on customer contract receivables and Rs 5,000 impairment on loans to a supplier, with neither impairment presented separately in the statement of profit and loss. What must be disclosed under Ind AS 115 paragraph 113?

Disclose Rs 10,40,000 as revenue from contracts with customers, separately from lease and interest income, and Rs 15,000 as impairment on customer contract receivables, separately from the Rs 5,000 impairment on supplier loans, because neither is presented separately in the statement of profit and loss.

  1. ARs 12,00,000 as revenue from contracts with customers and Rs 20,000 as total impairment
  2. BRs 10,40,000 as revenue from contracts with customers separately from other revenue, and Rs 15,000 as impairment on customer contract receivables separately from the Rs 5,000 other impairmentCorrect
  3. CRs 11,60,000 as revenue from contracts with customers, being revenue less interest income, and Rs 15,000 impairment
  4. DRs 10,40,000 as revenue from contracts with customers and Rs 5,000 as the impairment relating to customer contracts

Explanation

Revenue from contracts with customers is Rs 10,40,000, to be disclosed separately from the lease income and interest income. Impairment on customer contract receivables of Rs 15,000 is disclosed separately from the Rs 5,000 on supplier loans. Option three wrongly excludes only interest, and option four swaps the impairment amounts.

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