What is the difference between IFRS 15 and Ind AS 115? (2023)

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What is the difference between IFRS 15 and Ind AS 115?

As per paragraph of 15 of IFRS 15, an amount of consideration, among other things, can vary because of penalties. No Major differences between INDAS -115 and IFRS-15.

(Video) Understanding IFRS 15 / Ind AS 115 (High Level Summary in 11 minutes)
What is the difference between Ind AS 18 and Ind AS 115?

Ind AS 18 deals with revenue arising from sale of goods, rendering of services and interest, dividend and royalties. Ind AS 11 deals with revenue arising from construction contracts. Ind AS 115 is applicable to contracts with customers to provide goods or services in the ordinary course of business.

(Video) Ind AS 115 & IFRS 15 |Revenue from contract with customer | #English #IndAS | CA Swati Gupta
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How is IFRS 15 different?

All in all IFRS 15 is more prescriptive than former IFRS-rules for revenue recognition and provides more application guidance. The disclosure requirements are also more extensive. The standard affects entities across all industries.

(Video) IFRS 15 / Ind AS 115: Contract Costs
What is the main difference between IAS 18 and IFRS 15 revenue recognition )?

Under IAS 18, the timing of revenue recognition from the sale of goods is based primarily on the transfer of risks and rewards. IFRS 15, instead, focuses on when control of those goods has transferred to the customer. This different approach may result in a change of timing for revenue recognition for some entities.

(Video) IFRS 15 (Ind AS 115) Revenue from contract with customers
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What is the difference between Ind AS and IFRS?

Indian AS or IND AS is used in the context of Indian companies.
Difference between IFRS and IND AS.
IFRS stands for International Financial Reporting Standards, it is an internationally recognised accounting standardIND AS stands for Indian Accounting Standards, it is also known as India specific version of IFRS
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(Video) How do you record customer loyalty points as per IFRS-15/Ind-AS-115?
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What is the difference between AS and Ind AS?

IND AS 1 deals with presentation of financial statements. AS 1 deals with disclosure of accounting policies.

(Video) Ind AS 115 & IFRS 15 |Revenue from contract with customer | #Hindi #IndAS | CA Swati Gupta
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What is the need for IND as 115?

Ind AS 115 requires entities to determine whether an upfront fee is related to the transfer of a promised good or service. In addition, Ind AS 115 notes that non-refundable upfront fee is often related to activities an entity must undertake at or around the beginning of a contract.

(Video) Ind-As 115 (IFRS-15) - "Identifying Contract"
(ज्ञान GyanIfrs)
What are the 5 steps in Ind AS 115?

Recognition - Five Step Model
  • Step 1: Identify the contracts with the customers. ...
  • Step 2: Identify the separate performance obligations. ...
  • Step 3: Determine the Transaction Price. ...
  • Step 4: Allocate the transaction price to the performance obligations. ...
  • Step 5: Revenue Recognition when performance obligations are satisfied.

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Is there any difference between Ind AS 116 and IFRS 16?

IND AS 116 is in substance fully convergent with IFRS 16 and contains similar principles and requirements for lease accounting and reporting by a lessee. This new model is supposed to be based on the principle of substance over form.

(Video) Differences between Ind AS 115 Vs AS 9 by CA Abhishek (in English)
(BDRD Tutorial)
What is the purpose of IFRS 15?

The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.

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What is the change with IFRS 15?

IFRS 15 introduces new qualitative and quantitative disclosure requirements. The aim of the new disclosure requirements is to enable financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

(Video) Ind-As 115 (IFRS-15) - "Who is Customer? "
(ज्ञान GyanIfrs)
Why is IFRS 15 better?

IFRS 15 contains guidance for transactions not previously addressed (service revenue, contract modifications); IFRS 15 improves guidance for multiple-element arrangements; IFRS 15 requires enhanced disclosures about revenue.

What is the difference between IFRS 15 and Ind AS 115? (2023)
Does IFRS 15 replace IAS 18?

IFRS 15 replaces IAS 11, IAS 18, IFRIC 13, IFRIC 15, IFRIC 18 and SIC‑31. IFRS 15 provides a comprehensive framework for recognising revenue from contracts with customers.

Why IAS 18 was replaced by IFRS 15?

Figure 1: Revenue can be recognized from goods or services

IAS 18 contains principles for revenue recognition, but they are quite broad and as a result, many companies use their judgment to apply them to their specific situation. This is one of the main reasons for IAS 18 to be replaced by IFRS 15.

When did IFRS 15 replace IAS 18?

IFRS 15, which replaces IAS 18 Revenue, IAS 11 Construction Contracts and their associated interpretations, comes into effect for periods commencing on or after 1 January 2018.

What is the difference between Ind AS IFRS and US GAAP?

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.

What are the differences between IFRS and IAS?

What is IAS and IFRS? The IAS was a set of standards that was developed by the International Accounting Standards Committee (IASC). They were originally launched in 1973 but have since been replaced by the IFRS. IFRS is a set of standards that was developed by the International Accounting Standards Board (IASB).

What is the difference between Ind AS and GAAP?

The difference between GAAP and IND AS is that GAAP is used in the United States of America and Ind AS is used specifically in India.

What are the 4 principles of IFRS?

IFRS requires that financial statements be prepared using four basic principles: clarity, relevance, reliability, and comparability.

What is IND as in simple terms?

Indian Accounting Standard (abbreviated as Ind-AS) is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977.

Why is Ind better than as?

Ind-AS generally use the word –“shall” in its guidance, which makes it more strict. Ind-AS provide guidance on various transactions like agriculture, business combinations etc. These guidances were not existing in AS. AS contains subjectivity at quite a few places.

What are the two objectives of IND AS?

Objectives of Indian accounting standards (Ind As):

Ensure companies in India adopt these standards to implement internationally recognized best practices. Ensure that compliance is maintained worldwide. Have a single framework for a single accounting system.

What are the three types of IND?

Three IND Types

an unapproved drug; an approved product for a new indication; or. in a new patient population.

How do you audit revenue as per IND as 115?

Following criteria should be met for accounting a contract under this standard:
  1. Parties to the contract have approved the contract.
  2. Parties are committed to performing their respective obligations.
  3. Each party's rights and payment for the contract is identified.
  4. A contract has commercial substance.
7 Jun 2021

How do you prepare financial statements as per ind?

As Per IND AS 1, a complete set of financial statements should be presented at least annually. previous period should be disclosed in financial statements unless an IND AS permits/ Requires otherwise. statements. reasons for not classifying and nature of adjustment that would have been made if reclassified.

How do you know if IND is applicable?

The Ind AS shall be applied on both standalone and consolidated financial statements. Also, NBFCs with a net worth of less than Rs. 250 crores shall not apply Ind AS on a voluntary basis.

Why is IND as needed?

Ind AS is based on They facilitate the cross-border flow of money, global listing and global comparability of the financial statements. This, in turn, facilitates global investment and benefit to capital market stakeholders. It enhances the investor's ability to compare the investments on a global basis.

Why is 116 Ind needed?

Ind AS 116 primarily offers changes in the accounting by lessees and recognises almost all leases on the balance sheet. It removes the distinction between operating and finance leases. It also requires recognition of an asset and a financial liability to pay rentals, for virtually all lease contracts.

What is the objective of Ind AS 16?

The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity's investment in its property, plant and equipment and the changes in such investment.

Does IFRS 16 distinguish between operating and finance lease?

Under IFRS 16, lessees will no longer distinguish between finance lease contracts (on balance sheet) and operating lease contracts (off balance sheet), but they are required to recognise a right-of-use asset and a corresponding lease liability for almost all lease contracts.

What is the core principle of IFRS 15?

The core principle of IFRS 15 is that revenue is recognised when the goods or services are transferred to the customer, at the transaction price.

What are the five steps of IFRS 15?

Identify separate performance obligations. Determine the transaction price. Allocate transaction price to performance obligations. Recognise revenue when each performance obligation is satisfied.

How does IFRS 15 affect a company?

IFRS 15 states very precise and detailed guidance on whether the goods or services promised under the contract are distinct and whether they can be considered separate performance obligations or not.

How does IFRS 15 affect financial statements?

For firms that disclosed IFRS 15 impacts on financial statements, revenue was the most affected item. Cost of goods sold, contract liabilities and profit after tax were three other most affected financial statement items. Finally, the standard affected financial statements through multiple channels.

What are IFRS 15 contract assets?

A contract asset is defined in IFRS 15 as “an entity's right to consideration in exchange for goods or services that the entity has transferred to a customer, when that right is conditioned on something other than the passage of time, for example, the entity's future performance”.

What are the exceptions of IFRS 15?

Also, be aware that there are some exclusions from IFRS 15, namely: Leases (IAS 17 or IFRS 16) Financial instruments and other rights and obligations within the scope of IFRS 9 (IAS 39), IFRS 10, IFRS 11, IAS 27, IAS 28; Insurance contracts (IFRS 4) and.

What is the biggest advantage of IFRS?

Benefits of IFRS Accounting Standards

IFRS Accounting Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.

What is a material right under IFRS 15?

Material Rights is an option given to a customer to acquire additional goods or services free of charge or at a discount.

What are the two types of warranty according to IFRS 15?

IFRS 15:B32 explains the accounting when a warranty, or a part of a warranty, provides a customer with a service in addition to the assurance that the product complies with agreed-upon specifications (i.e. the contract includes both a service-type warranty and an assurance-type warranty):

Is as 15 the same as Ind AS 19?

IndAS 19 is adopted from and is similar to IAS 19. Before Ind AS were introduced, all Indian companies were following Indian GAAP (generally accepted accounting principles). AS 15 is the accounting standard for employment benefit schemes under Indian GAAP published by ICAI.

Does IFRS 15 apply to banks?

If the bank concludes that the fees are not within the scope of IFRS 9 then they would be accounted for in accordance with IFRS 15. This could include cardholder reward programmes because IFRS 15 does not explicitly exclude them from its scope.

What are the four criteria for revenue recognition?

In this instance, revenue is recognized when all four of the traditional revenue recognition criteria are met: (1) the price can be determined, (2) collection is probable, (3) there is persuasive evidence of an arrangement, and (4) delivery has occurred.

Is percentage of completion allowed under IFRS 15?

This means for most long-term projects, the percentage of completion method should be used. International Financial Reporting Standards (IFRS 15) provides guidance on the treatment of stored materials in income recognition. Stored materials don't represent completed work, so they have to be treated differently.

When did the most recent changes to IFRS 15 become effective?

January 1, 2018

What is a transaction price IFRS 15?

Step three of the five-step IFRS 15 model requires the entity to determine the transaction price, which IFRS 15 defines as the “amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties” ...

What does IFRS stand for?

International Financial Reporting Standards (IFRS) are a set of accounting standards that govern how particular types of transactions and events should be reported in financial statements. They were developed and are maintained by the International Accounting Standards Board (IASB).

What is IND 115?

1 The objective of this Standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

Is IFRS 16 and Ind AS 116 same?

Ind AS 116 / IFRS 16 records the present value of all future lease payments as liability in the books of lessee as also a corresponding Right-of-use (ROU) asset. As the liability is at present value there is an interest cost which builds the liability to match the actual payouts.

What are the major changes brought by IFRS 15?

The biggest changes will be noticed by the entities offering products and services in multiple item packages; selling licenses; providing services in a form of long-term contracts and those who apply variable price or conditional remuneration in their contracts with clients.

What is the impact of Ind AS 115?

Ind AS 115 is more than just an accounting change. It has impact on systems and processes including data collection and areas like contracting with customers.

What are the two objectives of Ind AS?

Objectives of Indian accounting standards (Ind As):

Ensure companies in India adopt these standards to implement internationally recognized best practices. Ensure that compliance is maintained worldwide. Have a single framework for a single accounting system.

What is fair value as per Ind AS?

9 This Ind AS defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

What is qualifying asset as per Ind AS?

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. 6. Borrowing costs may include: (a) interest expense calculated using the effective interest method.

What is the main difference between ifrs4 and ifrs17?

The key difference between IFRS 17 and IFRS 4 is the consistency of application of accounting treatments to areas such as revenue recognition and liability valuation. Profit recognition at the start of the contract. Revenue includes premium and may include an investment component.

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