Comparison of ICDS III, AS-7 & IndAS-115

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.... construction contracts and AS 9 deals with the recognition of revenue arising in the course of ordinary activities of the entity - sale of goods, rendering of services and use by others of entity resources yielding interest, royalties and dividend. Ind AS 115 applies to contract with a customer and establishes principles on reporting the nature, amount, timing and uncertainty of revenue and cash....

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....be estimated reliably; else, revenue is recognised only to the extent of costs incurred if recovery is probable. When it is probable that total contract costs will exceed total contract revenue, the expected loss should be recognised as an expense immediately The core principle under Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to cus....

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....endent in terms of design, technology, and function of their ultimate purpose or use A contract falls within the scope of Ind AS 115, when all the following conditions are met: a) The contract has commercial substance (that is, the risk, timing, or amount of future cash flows is expected to change as a result of the contract) b) The parties to the contract have approved the contract c) Each pa....