ACCA FR · Chapter 5 · Question 1 of 11
What is the correct order of the five steps for recognising revenue under IFRS 15?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Identify the contract; identify the performance obligations; determine the transaction price; allocate the price to the obligations; recognise revenue when or as each obligation is satisfied
Explanation
IFRS 15 sets out five steps: (1) identify the contract with a customer, (2) identify the separate performance obligations, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations, usually by relative stand-alone selling price, and (5) recognise revenue when or as each performance obligation is satisfied.
More Revenue from contracts with customers MCQs
- Q3Under IFRS 15, when may variable consideration (such as a performance bonus) be included in the transaction price?
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