CAF-6 · Chapter 5 · Question 2 of 15
Under IFRS 15, a contract with a customer exists only if:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It is probable that the entity will collect the consideration.
Explanation
One of the criteria for identifying a contract is that it is probable the entity will collect the consideration to which it will be entitled.
More IFRS 15 Revenue from Contracts with Customers MCQs
- Q4What is 'Variable Consideration'?
- Q5Skyline Ltd sells 100 units at Rs. 200 each. Customers have a right to return within 30 days. Skyline expects 5 units to be returned. How…
- Q6If a contract has a significant financing component (payment is delayed by 2 years), the transaction price should be:
- Q7A bundle of Product A and Service B is sold for Rs. 800. Standalone prices are: A = Rs. 600, B = Rs. 400. How much is allocated to Product…
- Q8Revenue is recognized 'Over Time' if: