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

Sundaram Foods Ltd reports in its statement of profit and loss revenue from contracts with customers of Rs 8,50,000 and interest income on a loan of Rs 40,000. It also recognised an impairment loss of Rs 15,000 on trade receivables arising from customer contracts and Rs 10,000 on a loan to a supplier. As per paragraph 113 disclosures (where not separately presented in the statement of profit and loss), what amounts are disclosed as revenue from contracts with customers and as impairment losses on customer contract receivables?

Revenue from contracts with customers is Rs 8,50,000 and impairment on customer-contract receivables is Rs 15,000. Paragraph 113 requires both to be disclosed separately from other revenue (the interest income) and other impairment losses (the supplier loan).

  1. ARevenue Rs 8,90,000; impairment Rs 25,000
  2. BRevenue Rs 8,50,000; impairment Rs 15,000Correct
  3. CRevenue Rs 8,50,000; impairment Rs 25,000
  4. DRevenue Rs 8,90,000; impairment Rs 15,000

Explanation

Paragraph 113 requires revenue from contracts with customers to be disclosed separately from other revenue, so interest of Rs 40,000 is excluded. Impairment on receivables or contract assets from customer contracts must be disclosed separately from other impairment, so the Rs 10,000 supplier loan impairment is excluded. Result: Rs 8,50,000 and Rs 15,000.

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