Ind AS 115 | Contract Modifications Explained | When Is It Treated as a Separate Contract? | CA FR

Understanding when a contract modification is treated as a separate contract is essential for Ind AS 115 and Ind AS 116 compliance A modification is viewed as a separate contract if it meets two specific conditions First, the scope of the contract must increase due to the addition of promised goods or services Second, the consideration must increase by an amount that reflects the standalone selling price of those additional goods or services If both conditions are satisfied, you continue accounting for the original contract as before and treat the new addition as a separate contract starting from the modification date #IndAS115 #ContractModification #AccountingStandards #Finance #FinancialReporting #BusinessAccounting #AuditLife