CAF-6 · Chapter 5 · Question 13 of 15
When should an entity recognize a 'Contract Asset'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) When it has satisfied a performance obligation but the right to payment is conditional on something other than the passage of time.
Explanation
A contract asset represents the entity's right to consideration for goods/services transferred when that right is conditioned on something other than just time.
More IFRS 15 Revenue from Contracts with Customers MCQs
- 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:
- Q3A company sells a machine and provides a 1-year service plan that is also sold separately. How many performance obligations are in this…
- Q4What is 'Variable Consideration'?