Different Revenue Accounting as per IFRS15 and India GAAP Conventions (Multi-period accounting) when
We are using PL with IFRS 15 and SL with India GAAP convention. RMCS is linked to the primary ledger.
We have a requirement for a certain kind of subscription to do revenue accounting as Point in Time in primary ledger from RMCS as per IFRS 15 but to accrue the revenue over time as per India GAAP.
For example, if total subscription is for Rs. 60000 for 1 year, which consists of software support paid upfront, we need the below accounting:
PL (IFRS 15) from RMCS
Contract Liability Dr 60000
Contract Revenue Cr 60000
SL (India GAAP)
Jan-21 Receivables Dr 60000
Deferred Revenue Cr 60000
Deferred Revenue Dr 5000