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

Under Ind AS 115 as notified in India, which of the following correctly describes a disclosure requirement in paragraph 113 regarding contracts with customers?

Ind AS 115 paragraph 113(a) requires revenue from contracts with customers to be disclosed separately from the entity's other revenue sources, unless the statement of profit and loss already presents it separately under another Standard. So combining it with interest or dividend income is not permitted.

  1. ARevenue from contracts with customers must be disclosed separately from the entity's other sources of revenue, unless presented separately in the statement of profit and loss under other StandardsCorrect
  2. BRevenue from contracts with customers may be combined with interest and dividend income into one total revenue figure
  3. CImpairment losses on contract assets must be netted against revenue before disclosure
  4. DImpairment losses on receivables from customers must be merged with impairment losses from all other contracts

Explanation

Paragraph 113(a) requires revenue recognised from contracts with customers to be disclosed separately from other sources of revenue, unless it is already presented separately in the statement of profit and loss under other Standards. Combining it with interest or dividend income, as in the second option, breaches this requirement. Netting impairment against revenue or merging impairment losses with those of other contracts contradicts paragraph 113(b).

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