CMA Final · Corporate Financial Reporting · Revenue from Contracts with Customers (Ind AS 115)
Vidya Infra Ltd reports in its statement of profit and loss: revenue from contracts with customers ₹900 lakh, rental income from investment property ₹40 lakh, and interest income on deposits ₹10 lakh. It also recognised impairment losses of ₹6 lakh on trade receivables arising from customer contracts and ₹2 lakh on a loan to an associate. Under paragraph 113 of Ind AS 115, unless presented separately in the statement of profit and loss, what must the entity disclose?
Vidya Infra must disclose ₹900 lakh as revenue from contracts with customers, separately from rental and interest income, and ₹6 lakh impairment on customer-contract receivables, separately from the ₹2 lakh loan impairment. Paragraph 113 requires both separations unless already presented in the statement of profit and loss.
- ARevenue from contracts with customers of ₹950 lakh and impairment of ₹8 lakh as one combined figure
- BRevenue from contracts with customers of ₹900 lakh, shown separately from other revenue, and impairment losses of ₹6 lakh on customer-contract receivables, shown separately from other impairmentCorrect
- CRevenue of ₹940 lakh excluding interest, and impairment of ₹8 lakh
- DOnly total revenue of ₹950 lakh, with no impairment disclosure needed
Explanation
Paragraph 113 requires disclosure of (a) revenue from contracts with customers separately from other sources of revenue, here ₹900 lakh, and (b) impairment losses on receivables or contract assets from customer contracts separately from other impairment, here ₹6 lakh. The ₹2 lakh loan impairment is not from a customer contract. Combining figures breaches both limbs.
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