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Under Ind AS 115, an entity recognises revenue when (or as) it satisfies a performance obligation, which happens when:
APhysical possession of the goods passes from seller to customer
BThe customer obtains control of the promised good or service
CLegal title to the goods passes from seller to customer
DThe seller's invoice is issued to the customer
Answer & Solution
Correct answer: B. The customer obtains control of the promised good or service
Para 31 — the load-bearing concept of Step 5 is TRANSFER OF CONTROL. Invoicing, legal title, and physical possession are indicators that MAY suggest control has transferred but none of them, by itself, is determinative.
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