CAF-6 · Chapter 5 · Question 10 of 15
If an entity acts as an 'Agent', how much revenue should it recognize?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The net amount (commission) it expects to be entitled to.
Explanation
An agent recognizes revenue only for the commission or fee it is entitled to, rather than the full transaction price.
More IFRS 15 Revenue from Contracts with Customers MCQs
- 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:
- Q1Which of the following is Step 3 of the IFRS 15 five-step model?