Question

    A construction company signs a ₹50 crore contract for

    building a bridge over 5 years. It recognizes revenue based on the percentage-of-completion method. At the end of Year 2, 40% work is complete. What is the revenue to be recognized?
    A ₹10 crore Correct Answer Incorrect Answer
    B ₹20 crore Correct Answer Incorrect Answer
    C ₹40 crore Correct Answer Incorrect Answer
    D ₹25 crore Correct Answer Incorrect Answer

    Solution

    Under Ind AS 115, revenue = % completed × Contract Value = 40% × ₹50 crore = ₹20 crore.

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