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Under Ind AS 115's disclosures, the TRANSACTION PRICE ALLOCATED TO REMAINING PERFORMANCE OBLIGATIONS must be disclosed unless certain practical expedients are met. Disclosure typically includes:
AThe amount allocated to unsatisfied (or partially unsatisfied) POs, plus an explanation of when the entity expects to recognise that amount as revenue (e.g., quantitative time bands or qualitative)
BOnly the aggregate amount, with no timing breakdown
COnly the unsatisfied POs that arose from variable consideration
DOnly the original contract value of POs not yet started
Answer & Solution
Correct answer: A. The amount allocated to unsatisfied (or partially unsatisfied) POs, plus an explanation of when the entity expects to recognise that amount as revenue (e.g., quantitative time bands or qualitative)
Para 120-122 — the disclosure of "unsatisfied PO" backlog requires both the amount AND an explanation of expected timing of revenue recognition (quantitative time-bands or qualitative). Some practical expedients let entities omit the disclosure for short contracts (≤1 year) or where the entity invoices an amount that corresponds directly with the value transferred to date. Quantitative timing — not just the amount — is core to the disclosure.
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