Question

Under Ind AS 115, a construction company enters into a contract to build a dam over 4 years. Revenue is recognized over time based on cost incurred to date. In year 2, 50% of the cost is incurred. How should the company recognize revenue?

A Recognize all revenue at project completion
B Recognize 50% of total contract revenue
C Recognize only actual cash received
D Defer revenue till 75% work is complete
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