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    Question

    When is revenue from construction contract recognised

    under Ind AS when outcome cannot be estimated reliably?
    A Recognise contract revenue to the extent of contract costs incurred that are expected to be recoverable; recognise expected losses immediately Correct Answer Incorrect Answer
    B Recognise full contract revenue upfront Correct Answer Incorrect Answer
    C Defer all revenue until completion Correct Answer Incorrect Answer
    D Recognise as non-current liability Correct Answer Incorrect Answer
    E Recognise as OCI only Correct Answer Incorrect Answer

    Solution

    When outcome uncertain, recognise costs as revenue to the extent recoverable; losses recognised immediately.

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