ACCA FR · Chapter 5 · Question 9 of 11
Which of the following is one of the IFRS 15 criteria for recognising revenue over time?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs
Explanation
Revenue is recognised over time if any one of three criteria is met. These are: the customer simultaneously receives and consumes the benefits; the entity's performance creates or enhances an asset the customer controls; or the asset has no alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Contract length, advance payments and invoicing are not criteria.
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