Assertion (A): Under Ind AS 115, an entity should recognize revenue when (or as) it satisfies a performance obligation. Reason (R): A performance obligation is satisfied when the customer obtains control of the good or service. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. Both A and R are true and R is the correct explanation of A
C. A is false but R is true
D. A is true but R is false
Answer: Option B
Solution (By JKSSB Mock Tests)
Ind AS 115's core principle is recognizing revenue upon satisfaction of performance obligations. Satisfaction occurs precisely when control of the underlying good or service transfers to the customer. R perfectly explains A.
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