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Under Ind AS 115, when a customer pays for goods or services in a form OTHER THAN CASH (e.g., shares of stock), the non-cash consideration is measured at:
AFair value at contract inception; if fair value cannot be reasonably estimated, fall back to the standalone selling price of the goods/services promised
BHistorical cost of the non-cash item to the customer
CThe face value of the non-cash consideration agreed in the contract
DZero until the non-cash item is converted into cash
Answer & Solution
Correct answer: A. Fair value at contract inception; if fair value cannot be reasonably estimated, fall back to the standalone selling price of the goods/services promised
Para 66-69 — non-cash consideration is measured at fair value at contract inception; if fair value is not reasonably estimable, the entity measures it indirectly by reference to the standalone selling price of the goods/services exchanged. Subsequent changes in fair value due to the FORM of the consideration are NOT adjusted in the transaction price.
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