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

Under Ind AS 115, as notified in India, how is the presentation of excise duty in the statement of profit and loss addressed?

Ind AS 115 requires an entity to present separately, in the statement of profit and loss, the amount of excise duty included in the revenue recognised. This is an Indian carve-in compared with IFRS 15, so it is neither netted silently nor treated as variable consideration.

  1. AExcise duty is deducted from revenue and no disclosure of it is required
  2. BThe amount of excise duty included in the revenue recognised must be presented separately in the statement of profit and lossCorrect
  3. CExcise duty is shown only in the notes as a contingent liability
  4. DExcise duty is treated as variable consideration and estimated at contract inception

Explanation

Ind AS 115 contains an addition over IFRS 15 (paragraph 109AA) requiring the 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 off silently, nor treated as variable consideration or a contingent liability.

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