CA Final performanceobligations — practice questions
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Practice CA Final performanceobligations in the app →Under Ind AS 115, a "performance obligation" in a contract is:For a good or service to be "distinct" under Ind AS 115, BOTH of which conditions must be met?When a performance obligation is satisfied, Ind AS 115 requires the entity to recognise revenue at:An entity sells a software licence + an installation service (routinely provided by third parties, does NOT siA car-maker has a HISTORICAL PRACTICE of offering free 2-year maintenance to end customers of dealers who buy V Ltd. grants a customer a three-year anti-virus software licence and promises when-and-if-available updates tAn entity sells gym memberships at ₹7,500 per year and offers a discounted renewal at ₹6,000 in years 2-3. TheAn entity sells Product A for ₹1,000 with a 40% discount voucher usable on additional purchases within 30 daysAn entity enters a 60-day CONSIGNMENT arrangement: it ships 1,000 dresses to a retailer; the retailer pays ₹20An entity negotiates with airlines, agrees to BUY a specified number of tickets at reduced rates (paying for uAn entity charges a NON-REFUNDABLE upfront activation fee for a new data connection plus monthly usage chargesXYZ Ltd. enters a contract to build sophisticated machinery for ₹2.5 crore. For each day after 31 March 20X1 tAST Ltd. has early-completion bonuses on a ₹25 cr contract: 15% bonus at 25% likelihood, 10% at 40%, 5% at 15%A 5-year contract requires the customer to use the vendor's system to process all of its transactions; the ultAn entity agrees to deliver a good for ₹1,00,000; if delivery exceeds 30 days, a penalty reduces the receivabl