CAF-6 · Chapter 5 · Question 8 of 15
Revenue is recognized 'Over Time' if:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The entity has a right to payment for work completed to date and the asset has no alternative use.
Explanation
One criterion for 'over time' recognition is when the entity's performance creates an asset with no alternative use and the entity has an enforceable right to payment for performance completed to date.
More IFRS 15 Revenue from Contracts with Customers MCQs
- Q10If an entity acts as an 'Agent', how much revenue should it recognize?
- 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: