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. Amortized over the contractual period of the agreement
B. Recognized immediately upon receipt of cash
C. At the point in time when the entity transfers control of the good/service
D. Over the expected life of the customer relationship
Answer: Option C
Solution (By JKSSB Mock Tests)
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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