Accounting Standards

  Ind AS 115- Revenue from Contract with Customers Introduction:-  Ind AS 115, is applicable w.e.f 01.04.2018.  Ind AS 115- Supersede the earlier Ind AS 18- Revenue Recognition and Ind AS 11 Construction Contract.  Definitions Contracts-  A contract is an agreement between two or more parties that creates enforceable rights and obligations. Enforceability of the rights and obligations in a contract is a matter of law. Contracts can be written, oral or implied by an entity’s customary business practices. Some contract may have no fixed duration and can be terminated or modified either by the party any time. Other contract may automatically renew as per term of contract.  An entity apply This standard to the duration of contract (i.e, contractual period) in which the parties to the contract have present enforceable rights and obligations. For the purpose of applying this Standard, a contract does not exist if each party to the contract has the unilateral enfo...

  Ind AS 115- Revenue from contract with Customers      Applicability :-                                 Q1. Whether  Ind AS 115  applicable on Real estate? Ans/- Yes,   Q2. Applicability of Ind AS 115 on Export incentive received from Govt. e.g,  As per the Foreign Trade Policy in India,  Merchandise Exports from India Scheme (“MEIS”), the Company is eligible  to  claim 2% of its FOB value of exports as export incentives. Ans. No, per paragraph 3 of Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance, ‘government grants’ are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reason...

  Revenue vs Income       Revenue = "Revenue is income arise in ordinary course of business from ordinary activity"      " Income  =  as increase in economic benefit during Accounting period in form of                                INFLOW,                              ENHANCEMENT OF ASSETS,                              DECREASE IN LIABILITIES,                              that result in INCREASE in EQUITY.