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An entity sells X, Y and Z. Individual SSPs: X = ₹50,000, Y = ₹25,000, Z = ₹45,000 (total ₹120,000). The entity REGULARLY sells Y + Z together for ₹50,000 (a ₹20,000 bundle discount). It also sells X separately for ₹50,000. Contract: X + Y + Z for ₹100,000. Under Ind AS 115, the ₹20,000 contract discount should be allocated:
AEntirely to Product X — the largest SSP component
BEqually split into ₹6,667 per product
CProportionately to all three POs using relative SSPs (X, Y, Z)
DEntirely to Products Y and Z, because there is observable evidence (the regular Y+Z bundle at ₹50,000) that the discount belongs to that bundle
Answer & Solution
Correct answer: D. Entirely to Products Y and Z, because there is observable evidence (the regular Y+Z bundle at ₹50,000) that the discount belongs to that bundle
Para 82 — the three conditions are met: (a) the entity regularly sells each on a standalone basis, (b) the entity regularly sells the Y+Z bundle at a discount to combined SSP, and (c) the bundle discount (₹20,000) is substantially the same as the contract discount. So the entire ₹20,000 discount is allocated to Y and Z, with X recognised at its full SSP of ₹50,000.
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