ACCA FA · Chapter 4 · Question 7 of 10
Under IFRS 15 Revenue from Contracts with Customers, when should revenue be recognised?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) When (or as) a performance obligation is satisfied by transferring control of goods or services to the customer
Explanation
IFRS 15 requires revenue to be recognised when, or as, the entity satisfies a performance obligation by transferring control of a promised good or service to the customer. Payment timing does not determine recognition, and signing a contract or manufacturing goods does not on its own transfer control.
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