CAF-6 · Chapter 5 · Question 11 of 15
A contract modification is treated as a 'Separate Contract' if the scope increases by adding distinct goods and:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The price increases by an amount that reflects the standalone selling price of the additional goods.
Explanation
A modification is a separate contract if it adds distinct goods/services and the price increase reflects their standalone selling prices.
More IFRS 15 Revenue from Contracts with Customers MCQs
- Q13When should an entity recognize a 'Contract Asset'?
- Q14A company receives a non-refundable upfront fee for joining a health club. No services are provided yet. This should be recorded as:
- Q15Revenue from a license that provides a 'Right to Use' the entity's intellectual property is recognized:
- Q1Which of the following is Step 3 of the IFRS 15 five-step model?
- Q2Under IFRS 15, a contract with a customer exists only if: