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Under Ind AS 115, a CONTRACT ASSET differs from a RECEIVABLE in that:
AA contract asset is measured at fair value; a receivable is measured at face
BA contract asset's right to consideration is conditional on something other than the passage of time (e.g., further performance); a receivable's right is unconditional
CA contract asset is denominated in foreign currency; a receivable is in local currency
DA contract asset is current; a receivable is non-current
Answer & Solution
Correct answer: B. A contract asset's right to consideration is conditional on something other than the passage of time (e.g., further performance); a receivable's right is unconditional
Para 105 — the distinction is conditionality. If the entity has transferred goods/services but its right to payment is conditional on something else (e.g., completing additional milestones, customer acceptance of further work), it is a CONTRACT ASSET. If only the passage of time remains before payment is due, it is a RECEIVABLE. Receivables are accounted under Ind AS 109.
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