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May 2024

From Published Accounts

By Himanshu Kishnadwala, Chartered Accountant
Reading Time 20 mins

Accounting Policy on Revenue Recognition for a Company in Information Technology

  •  Disclosure thereof in Financial Statements
  •  Considered as a Key Audit Matter by Statutory Auditor

Infosys Ltd – 31st March, 2024

1.4 Critical accounting estimates and judgments

a. Revenue recognition

The Company’s contracts with customers include promises to transfer multiple products and services to a customer. Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in writing, by the parties to the contract, the parties to the contract are committed to performing their respective obligations under the contract, and the contract is legally enforceable. The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligations to determine the deliverables and the ability of t

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