Question
A company sells air-conditioners with a 2-year free
maintenance service included in the contract. The customer pays the full consideration upfront at delivery. As per Ind AS 115, revenue should not be recognised fully on the date of sale. Instead, it must be allocated between the product and service obligations. Which of the following is the most appropriate treatment?Solution
Ind AS 115 requires separation of performance obligations. The product revenue is recognised when delivered, while maintenance revenue is recognised over the service period.
Under RBI’s scale-based regulatory framework for NBFCs, an NBFC–Peer-to-Peer Lending platform (NBFC-P2P) will always fall under which regulatory lay...
The coefficient of correlation takes the value in which of the following ranges?
What is the primary objective of CARO?
Under CGFMU, the amount in default over and above the initial 3% borne by the lending institution is covered to what extent?
A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs.
Calculate Return ...
In Zero-Based Budgeting (ZBB), the budget for each activity is:
A factory has direct material cost of ₹2,40,000 and direct labour of ₹1,60,000 for a batch of 1,000 units.
Factory overheads are absorbed at ...
Which principle states that transactions should be recorded when they occur, regardless of whether cash has been exchanged or not?
The form of Annual Financial Statement and Demand for Grants shall be laid down to Parliament by whom?
A firm's profit before tax is ₹6,00,000. Tax rate 25%. Profit after tax is:
