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Which of the following contracts is OUTSIDE the scope of Ind AS 115?
AA lease contract within the scope of Ind AS 116
BA contract to sell manufactured goods to a distributor
CA contract to provide IT consulting services to a customer
DA contract to license a trade name to a customer
Answer & Solution
Correct answer: A. A lease contract within the scope of Ind AS 116
Para 5 of Ind AS 115 explicitly scopes out leases (Ind AS 116), insurance (Ind AS 104), financial instruments (Ind AS 109), and non-monetary exchanges between entities in the same line of business to facilitate sales. IT consulting, sale of goods and licensing of IP to a customer are within scope.
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