Question

Under Ind AS 115, an entity is required to identify Performance Obligations at the inception of a contract. Which of the following is the correct criteria for a good or service to be considered distinct, thereby forming a separate performance obligation?

Q: Answer-Under Ind AS 115, an entity is required to identify Performance Obligations at the inception of a co...

To be considered a distinct performance obligation under Ind AS 115 1. Capable of being distinct The customer can use it on its own or with other resources. 2. Distinct within the context of the contract The promise to transfer is not part of a bundle where the entity provides a significant integration service. If they are highly interrelated Option C, they are usually combined into a single performance obligation and not distinct.