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Under Ind AS 109, planned future transactions (that have not yet become contractual obligations) are recognised:
ANever — only existing contractual rights/obligations are recognised under Ind AS 109
BWhen the management commits to the planned transaction at a board meeting
COn the date the budget for the planned transaction is approved
DWhen the planned transaction becomes probable
Answer & Solution
Correct answer: A. Never — only existing contractual rights/obligations are recognised under Ind AS 109
Para B3.1.2 — planned future transactions are explicitly excluded from recognition because they don't yet create a contractual right or obligation. Recognition follows the contract, not the plan.
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