Ind AS 115: Revenue from Contracts with Customers

Ind AS 115 revenue recognition - five-step model, contract modification, and practical implementation.

GetYourCA Team

|2 April 2026·Updated 2 April 2026|1 min read|12.5K views

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Ind AS 115: Revenue Recognition#

Five-Step Model#

Identify contract with customer
Identify performance obligations
Determine transaction price
Allocate price to obligations
Recognize revenue

Recognition Criteria#

Control transferred
Performance obligation satisfied
Collection probable

Contract Modification#

Additional goods/services
Price adjustment
Account prospectively

Practical Impact#

Construction contracts
Software licensing
Franchise fees
Multiple element arrangements

Key Changes#

Before	Under Ind AS 115
Risk/reward transfer	Control transfer
Point-in-time	Over time (certain criteria)
Separate contracts	Contract modifications

Disclosure Requirements#

Revenue breakdown
Contract balances
Performance obligations

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