Welcome Back To our blog of tallynotespdf.co.in.  In today's post, we will solve some ind as 115 practical examples which is quite essential from the accounting point of view.

ind as 115 revenue recognition

If we talk about short definition then ind as 115 revenue recognition is the Indian Accounting Standard for Revenue from Contracts with Customers, which provides guidelines on how to recognize revenue when a company enters into contracts to provide goods or services to customers.

There are some steps in ind as 115 revenue recognition which are as follows:

  • Step 1: Identify the Contract with the Customer
  • Step 2: Find Performance Obligations in the Contract
  • Step 3: Determine the Transaction Price
  • Step 4: Allocate the Transaction Price to the Performance Obligations
  • Step 5: Recognize Revenue When (or as) Each Performance Obligation is Satisfied

Now You know the short definition for ind as 115 revenue recognition and how it works let's move to our example:

ind as 115 revenue recognition Example

ABC Construction Company is working on a construction project to build a commercial office building for a client. 

The total contract price for the project is INR 1,000,000. ABC Construction expects the project to take two years to complete.

 At the end of the first year, they want to calculate how much revenue they should recognize for the work completed during that year.


To calculate revenue recognition over time using the percentage of completion method, follow these steps:

  • Step 1: Estimate Total Costs

First, estimate the total costs of the project. In this scenario, let's assume that ABC Construction estimates the total costs to complete the project will be INR 800,000.

  • Step 2: Calculate the Percentage of Completion

Next, calculate the percentage of completion. This is done by comparing the costs incurred to date to the estimated total costs.

At the end of the first year, let's assume that ABC Construction has incurred INR 400,000 in costs to complete the project.

  • Percentage of Completion = (Costs Incurred to Date / Estimated Total Costs) * 100
  • Percentage of Completion = (INR 400,000 / INR 800,000) * 100 = 50%

So, at the end of the first year, ABC Construction has completed 50% of the project.

  • Step 3: Recognize Revenue

Now that you have the percentage of completion, you can recognize revenue based on that percentage.

  • Revenue Recognized = (Percentage of Completion) * (Total Contract Price)
  • Revenue Recognized = (50%) * (INR 1,000,000) = INR 500,000


Here in this post, we add an example for ind as 115 revenue recognition so if you want to get a job in accounting in India then you should read this post till the end and solve ind as 115 practical examples.