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Under Ind AS 115's Step 5, an entity satisfies a performance obligation OVER TIME (rather than at a point in time) if ANY of which criteria is met?
AThe contract is long-duration and the performance is fragmented over weeks or months
BThe entity's performance is uncertain and depends on subsequent customer instructions
CCustomer simultaneously receives/consumes the benefits as the entity performs; OR the entity creates/enhances an asset the customer controls; OR the asset has no alternative use to the entity AND the entity has an enforceable right to payment for performance to date
DThe customer pays in instalments over the performance period
Answer & Solution
Correct answer: C. Customer simultaneously receives/consumes the benefits as the entity performs; OR the entity creates/enhances an asset the customer controls; OR the asset has no alternative use to the entity AND the entity has an enforceable right to payment for performance to date
Para 35 — the three over-time criteria are: (a) simultaneous receive-and-consume, (b) customer-controlled asset under creation, (c) no-alternative-use + enforceable right to payment for work to date. ANY ONE of these triggers over-time recognition. Duration, instalment payments, and performance uncertainty are NOT the criteria — they may correlate but are not determinative.
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