Ind AS 115, Revenue from Contracts with Customers (Ind AS 115) corresponding to IFRS 15 is notified by
the MCA vide notification dated 28 March 2018. The new standard is effective from financial year
commencing 1 April 2018.
Ind AS 115 specifies the accounting for all revenue arising from contracts with customers. It affects all
entities that enter into contracts to provide goods or services to their customers. While many of the
concepts in the new model are consistent with those in current Ind AS for recognising revenue, the
requirements for accounting for several elements will change. These include areas such as, identifying
multiple-elements with a bundled contract, accounting for long term contracts, estimating variable
consideration, customer contracts with financing elements, accounting for contract acquisition costs,
accounting for upfront amounts collected from customers and non-cash considerations. In addition, Ind
AS 115 introduces a number of new disclosure requirements that entities will need to evaluate.
Revenue or the top-line is an important performance indicator of the growth of a company. The growth
perception, enterprise valuation and investor sentiments, often largely depend on the reported revenue
figure. Ind AS 115 may have a major impact on the way the revenue is reported by Indian companies under
Ind AS. Ind AS 115 is a minefield of areas of accounting estimations and management judgments, and
would, therefore, the transition and application would call into action the financial reporting resources,
processes, information systems and the quality of corporate governance. Many accountants would
rediscover their organisations in the process.
This book is an attempt to cover the requirements of Ind AS 115, with examples, comparisons with
current Ind AS requirements, take international perspectives as can be seen from the financial
statements of early adopters of IFRS 15 and to take a closer look at the disclosure requirements.
Contains more than 200 worked examples covering various practical aspects of Ind AS 115
Contains simple explanations of the requirements of the new standard with lucid examples and
Relevant extracts from real-life international companies that have early adopted IFRS 15 along with
the impact of IFRS 15
Detailed sector-wise analysis of the impact of Ind AS 115
Author’s views and practical perspectives provided at various places
Comparison with current Ind AS requirements in respective sections
Detailed illustration of disclosure requirements of Ind AS 115