CA Final transactionpriceallocation — practice questions
15 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final transactionpriceallocation in the app →Under Ind AS 115, an entity allocates the transaction price to each performance obligation:Under Ind AS 115, the BEST EVIDENCE of a standalone selling price (SSP) is:Under Ind AS 115, an entity recognises revenue when (or as) it satisfies a performance obligation, which happeAn entity sells Products A, B and C for ₹10,000 total. SSPs: A = ₹5,000 (observable), B = ₹2,500 (estimated), An entity sells X, Y and Z. Individual SSPs: X = ₹50,000, Y = ₹25,000, Z = ₹45,000 (total ₹120,000). The entitUnder Ind AS 115, the RESIDUAL approach to estimating an SSP is permitted only when:An entity pays a non-refundable upfront fee to a retailer-customer to fund modifications the retailer makes toAn entity sells two licences (A and B). SSPs: Licence A = ₹16 lakh, Licence B = ₹20 lakh. Contract: A is fixedAn entity has Product A (observable SSP ₹50,000), Y+Z bundle (observable SSP ₹50,000) and Product Alpha (highlA consultant signs a ₹2 cr fixed-fee contract on 1 April 20X0 with three distinct POs (due diligence, valuatioUnder Ind AS 115's Step 5, an entity satisfies a performance obligation OVER TIME (rather than at a point in tA payroll-processing company contracts to provide monthly payroll services for one year. Under Ind AS 115, thiA construction contractor builds a customised office building on the customer's land. Under Ind AS 115, this sIndicators that control of an asset has been transferred to the customer under Ind AS 115 include all of the fTelco G grants a one-time RETENTION CREDIT of ₹50 to a customer in month 14 of a 24-month contract. The credit