Question
A software company enters into a ₹10 lakh contract
including installation and training. Installation is ₹8 lakh and training ₹2 lakh. Installation completes in March 2024 and training continues till May 2024. As per Ind-AS 115, how much revenue should be recognised by 31st March 2024?Solution
Revenue is recognised as control transfers. Installation completed, so ₹8 lakh recognised. Training is a separate performance obligation to be recognised later.
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