Explanation:
The cash brought in for goodwill is initially credited to a temporary 'Premium for Goodwill A/c', which is then distributed to sacrificing partners.
Under Ind AS 115, if an entity receives a non-refundable upfront fee and has no further performance obligations, when should the revenue be recognized?
A.Recognized immediately upon receipt of cash
B.At the point in time when the entity transfers control of the good/service
C.Amortized over the contractual period of the agreement
D.Over the expected life of the customer relationship
Explanation:
Ind AS 115 states that if an upfront fee relates to a good or service and there are no further performance obligations, revenue is recognized when control of that good or service is transferred.
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