Retention Money as per Ind as 109

just for GAGS (11 Points)

08 January 2023  

How are retention moeny to be treates in Ind As?

There are long EC contracts where retention money is being deducted on successive payments (mostly upto 5% of the contract value) and released when conditions are met of the contract.

Ind as required us to give Time value treatment for financial assets. But aren't retention money a kind of money with held for reasons other than time value? It is basically a deposit against protection of the term of contract. So is it required to discount retention money? Many top companies discount them. Kindly provide basis for the answer.



Sairaj shetty