CAF-6 · Chapter 5 · Question 9 of 15
Control of an asset is transferred to a customer when the customer has:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The ability to direct the use of and obtain substantially all remaining benefits from the asset.
Explanation
An asset is transferred when the customer obtains control, meaning they can direct its use and obtain substantially all its benefits.
More IFRS 15 Revenue from Contracts with Customers MCQs
- Q11A contract modification is treated as a 'Separate Contract' if the scope increases by adding distinct goods and:
- Q12Assurance-type warranties (that the product complies with agreed specifications) are accounted for under:
- 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: