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

Sagar Textiles Ltd reports Rs 9 crore from contracts with customers and Rs 1 crore of lease rental income, and recognised Rs 12 lakh of impairment loss under Ind AS 109 on receivables from customer contracts and Rs 5 lakh on loans to a joint venture. Unless presented separately in the statement of profit and loss, what must Sagar disclose under paragraph 113?

Paragraph 113 requires revenue from customer contracts, Rs 9 crore, to be disclosed apart from other revenue, and Ind AS 109 impairment on customer receivables or contract assets, Rs 12 lakh, to be disclosed apart from other impairment losses such as the Rs 5 lakh.

  1. ARevenue Rs 10 crore as one figure and impairment Rs 17 lakh as one figure
  2. BRevenue from contracts with customers Rs 9 crore separately from other revenue, and customer-contract impairment Rs 12 lakh separately from other impairmentCorrect
  3. CRevenue Rs 9 crore only, with no impairment disclosure
  4. DImpairment Rs 5 lakh only, since it relates to non-customer items

Explanation

Paragraph 113 requires revenue from contracts with customers to be disclosed separately from other sources of revenue, so Rs 9 crore apart from the Rs 1 crore lease income. It also requires impairment losses on receivables or contract assets from customer contracts to be separate from other impairment, so Rs 12 lakh apart from Rs 5 lakh. Combining them, as in the first option, fails the standard.

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