IND AS 115 in Action: 5 Industry Examples That Show How Revenue Recognition Changed Forever
If you've been following our series on India's accounting revolution, you already know that IND AS 115 fundamentally reshaped how companies recognize revenue. But theory only goes so far – let's see how this plays out in the real world across five major industries.
Example 1: Construction Contracts – Building Bridges, One Performance Obligation at a Time
The Old Way (IND AS 18):
A construction company would recognize revenue progressively as work was completed – simple percentage-of-completion method.
The New Way (IND AS 115):
Revenue is now recognized based on transfer of control, not just progress.
Real-World Scenario:
Imagine a company building a bridge for a government client. Under IND AS 115, they must first identify distinct performance obligations within that single contract:
