Question:
Which of the following is NOT a condition that must be satisfied under IFRS before revenue for a service
can be recognized?
a. The stage of completion can be measured reliably.
b. It is probable that the economic benefits associated with the transaction will flow to the seller.
c. Cash collection is at least reasonably possible.
d. The amount of revenue and costs associated with the transaction can be measured reliably.
Answer:
c. “Cash collection is at least reasonably possible” is not a requirement for revenue recognition under
IFRS.
Which of the following is NOT a condition that must be satisfied under IFRS before revenue for a service
can be recognized?
a. The stage of completion can be measured reliably.
b. It is probable that the economic benefits associated with the transaction will flow to the seller.
c. Cash collection is at least reasonably possible.
d. The amount of revenue and costs associated with the transaction can be measured reliably.
Answer:
c. “Cash collection is at least reasonably possible” is not a requirement for revenue recognition under
IFRS.
