In this session of Voices on Reporting webinar, we discussed salient features of Ind AS 115, Revenue from Contracts with Customers, which is expected to be implemented from accounting period beginning on or after 1 April 2018.
Revenue is a key performance metric for many entities and Ind AS 115 introduces a new framework – five step model – for the analysis of revenue transactions. The model specifies that revenue should be recognised when (or as) an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled.
The new revenue standard (Ind AS 115) is expected to be applicable to Indian companies following the Ind AS road map framework from 1 April 2018. Internationally, IFRS 15 (equivalent standard to Ind AS 115) is applicable from 1 January 2018. This standard would primarily replace the current standards on Ind AS 18, Revenue and Ind AS 11, Construction Contracts. While this accounting change may impact almost all companies with revenue, the impact may particularly be severe for companies in sectors such as telecommunications, technology, real estate, aerospace and defense, building and construction and contract manufacturing.
Starting this month, the Voices on Reporting presents a series of special sessions to discuss insights on Ind AS 115. In the first session of Ind AS 115 series, we discussed the key requirements of Ind AS 115, transition and key impact areas.
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