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Under Ind AS 115, an entity allocates the transaction price to each performance obligation:
AOn a relative standalone selling price (SSP) basis at contract inception
BEqually to each PO in the contract by simple division
COn the basis of the entity's expected cost plus a markup for each PO
DIn proportion to the time required to satisfy each PO
Answer & Solution
Correct answer: A. On a relative standalone selling price (SSP) basis at contract inception
Para 74 — allocation is on a RELATIVE SSP basis at contract inception. SSPs are not updated for changes between inception and performance (with two exceptions: discounts that relate to specific POs, and variable consideration that relates to specific POs).
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