Description
Product Overview BESTSELLER
Ind AS 115 – Revenue from Contracts with Customers has far-reaching effects on a company’s financial statements. It affects the top line of almost all organisations reporting under Ind AS. The new 5-step model, clearer guidance on segmenting contracts, multiple element arrangements, contract costs, significant financing components, and extensive disclosures are some of the areas that have changed the whole landscape of revenue recognition. Several new concepts have been introduced keeping in mind that revenue is a critical metric for financial users and there were important differences that existed which needed to be addressed.
The reason why it is of utmost importance to an entity is that it may cause revenue to be recognised earlier in some cases, but later in others compared to previous guidance. This in-depth video provides a full-scale coverage of each and every element of Ind AS 115 which has been explained in a user-friendly language with greater emphasis laid on accounting treatment. Important reporting and technical aspects are also discussed. They are supported with the use of interactive teaching, numerical examples, and case studies that will enable you to understand this complex standard in detail and applying in practice.
What you will learn from the video lecture:
- Definition of revenue
- What are ordinary activities
- What is a contract and a customer
- Core principle
- When to recognise revenue and at what amount
- Performance obligation
- Transaction price
- Contract liability and contract asset
- Receivable
- 5-step model for Ind AS 115
- Step 1 – 5 criteria for Identifying the contract
- Existence of a contract
- Combination of contracts with numerical example
- Contract modifications
- Step 2 – Identifying performance obligations
- Distinct goods or services
- Accounting for warranties
- Customer option for additional goods or services
- Customer loyalty program
- Non-refundable upfront fees
- Principal versus agent considerations
- Licensing
- Difference between access and use
- Step 3 – Determine the transaction price
- Variable consideration
- Refund liabilities with numerical example
- Accounting for sale with a right of return
- Constraining estimates of variable consideration
- Accounting for significant financing component
- Non-cash consideration
- Consideration payable to a customer
- Customers’ unexercised rights
- Step 4 – Allocate the Transaction Price to Performance Obligations
- Stand – alone selling price (SASP)
- Allocation based on SASP
- Estimation of SASP
- Adjusted market assessment approach
- Expected cost plus a margin approach
- Residual approach
- Allocation of a discount with numerical example
- Allocation of Variable Consideration
- Changes in the Transaction Price
- Step 5 – Satisfaction of Performance Obligations
- Definition of control
- Benefits of an asset
- When revenue should be recognised at a point in time or over time
- Performance Obligations satisfied over time
- Performance Obligations satisfied at a point in time
- Measuring progress
- What is output method and input method explained through numerical examples
- Repurchase agreements
- A forward or a call option
- Put option
- Consignment arrangements with numerical example
- Indicators of a consignment arrangement
- Bill-and-hold arrangements
- Customer acceptance
- Contract costs
- Costs to obtain a contract
- Costs to fulfill a contract
- Amortisation and impairment
- Presentation
Additional features:
Session type – Extensive deliberation on Ind AS 115 with maximum use of practical examples and engaging illustrations
On-Demand Access – Enjoy flexibility of accessing e-lecture anytime, anywhere, at your own pace, fitting seamlessly into your busy schedule
Unlimited Views – There is no restriction to the number of views
Study material – You will receive a soft copy of the presentation slides, and a handout of numerical worked examples
Support – Clarification of queries is also offered via digital communication for 1 year from the date of purchase
Harish Choksi (verified owner) –
i have a much better understanding of indas 115 now..many concepts got cleared..thank you for this wonderful video
Manohar Adhikari (verified owner) –
Great content and delivery! For me the use of illustrative case examples for each topic has been the highlight. It has definitely made difficult theory easy to grasp
Raunak Jajoo (verified owner) –
good explanation of revenue accounting standard