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

Veda Textiles Ltd. prepares its financial statements under Ind AS. During the year it earned revenue from contracts with customers of ₹8 crore and also earned rental income and interest income from other sources. It recognised an impairment loss on trade receivables arising from customer contracts and a separate impairment loss on a loan given to a supplier. The figures are not shown separately on the face of the statement of profit and loss. Which disclosure is required by Ind AS 115?

Veda Textiles must disclose revenue from contracts with customers separately from its other revenue such as rent and interest. It must also disclose impairment losses on customer-contract receivables and contract assets separately from impairment on other items like the supplier loan, unless already shown separately in the statement of profit and loss.

1. ARevenue from contracts with customers disclosed separately from other sources of revenue, and impairment losses on customer-contract receivables disclosed separately from impairment losses on other contractsCorrect
2. BTotal revenue disclosed as a single figure, with impairment losses on all receivables and loans combined into one amount
3. CRevenue from contracts with customers disclosed separately, but impairment losses on all financial assets combined into one amount
4. DOnly impairment losses on customer-contract receivables disclosed, since revenue need not be separated from other income