Question:
Which of the following is NOT true about revenue recognition for multiple deliverable contracts under
IFRS?
a. IAS No. 18 provides extensive guidance determining how contracts are to be separated into components
for purposes of revenue recognition.
b. IFRS encourages focus on the economic substance of transactions, so some arrangements are likely to
be accounted for differently than under U.S. GAAP.
c. Unlike U.S. GAAP, IFRS does not require VSOE for software contracts in order to separate contracts
into multiple deliverables.
d. IFRS focuses on fair values to allocate total revenue to components.
Answer:
a. IFRS does not provide extensive guidance determining how contracts are to be separated into
components for purposes of revenue recognition.
Which of the following is NOT true about revenue recognition for multiple deliverable contracts under
IFRS?
a. IAS No. 18 provides extensive guidance determining how contracts are to be separated into components
for purposes of revenue recognition.
b. IFRS encourages focus on the economic substance of transactions, so some arrangements are likely to
be accounted for differently than under U.S. GAAP.
c. Unlike U.S. GAAP, IFRS does not require VSOE for software contracts in order to separate contracts
into multiple deliverables.
d. IFRS focuses on fair values to allocate total revenue to components.
Answer:
a. IFRS does not provide extensive guidance determining how contracts are to be separated into
components for purposes of revenue recognition.
