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

Sagar Beverages Ltd sells products that carry excise duty, and the duty is included in the revenue it recognises in the statement of profit and loss under Ind AS 115. Which statement reflects the Ind AS 115 requirement as notified in India?

Ind AS 115 as notified in India, through paragraph 109AA, requires an entity to present separately the amount of excise duty included in the revenue recognised in the statement of profit and loss. It is not netted silently, shown as finance cost, or limited to listed entities.

  1. AExcise duty must be deducted from revenue and not mentioned anywhere
  2. BExcise duty included in revenue must be presented as part of finance costs
  3. CThe amount of excise duty included in the revenue recognised must be presented separately in the statement of profit and lossCorrect
  4. DExcise duty need be disclosed only when the entity is listed

Explanation

Ind AS 115 has an Indian carve-in, paragraph 109AA, requiring separate presentation of the excise duty amount included in revenue recognised in the statement of profit and loss. Hiding it or reclassifying it as finance cost is not permitted. The requirement does not depend on listing status.

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