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For a good or service to be "distinct" under Ind AS 115, BOTH of which conditions must be met?
AIt is delivered before any other good or service, AND it is a tangible item
BIt is invoiced separately, AND it is priced separately in the contract
CThe customer is geographically distinct, AND the entity has a separate pricing policy
DThe customer can benefit from it on its own (or with readily available resources), AND it is separately identifiable from other promises in the contract
Answer & Solution
Correct answer: D. The customer can benefit from it on its own (or with readily available resources), AND it is separately identifiable from other promises in the contract
Para 27 sets the two-step test: (a) capable of being distinct — the customer can benefit on its own or with other readily available resources, AND (b) distinct in the context of the contract — the promise is separately identifiable from other promises. Separate pricing/invoicing or delivery sequence are not the rule.
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