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Basic Question 4 of 5
According to IFRS, which of the following is one of the conditions that must be met for revenue recognition to occur?
B. Payment has been partially received.
C. Goods have been delivered to the customer.
A. Costs can be reliably measured.
B. Payment has been partially received.
C. Goods have been delivered to the customer.
User Contributed Comments 3
| User | Comment |
|---|---|
| choas69 | in the LOS it stated to recognize revenue; 1- completion of earning process. 2- assurance of payment. can someone explain why the correct answer is A. |
| ashish100 | ............ |
| Daood12 | What i think is , option C is incorrect because , revenue is recognized when Seller bears no risks and rewards of ownership, and this not necessarily means the goods are transferred , they can destroy as well. Option B is incorrect because , revenue is recognized when economic benefits associated with transaction become probable to flow to the seller , without considering partial, full or any payment at all. Option A is correct because , revenue is recognized when costs incurred or to be incurred in respect of transaction can be measured reliably. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe general principles of revenue recognition, specific revenue recognition applications, and implications of revenue recognition choices for financial analysis
CFA® 2024 Level I Curriculum, Volume 2, Module 2.