Discuss how the contract-based approach to revenue recognition is consistent with the definition of revenues in the conceptual framework discussed in Chapter 2. Explain the main concepts of the earnings approach and the contract-based approach. What are the conceptual differences between the two approaches?
Answer to relevant QuestionsCompare the accounting for long-term contracts under ASPE and under IFRS. Mackenzie Construction Services Ltd. has entered into a contract to construct an office building for Designers Corporation. Mackenzie prepares financial statements in accordance with IFRS. Explain how Mackenzie should ...During 2014, Antoinette started a construction job with a contract price of $2.5 million. The job was completed in 2016 and information for the three years of construction is as follows: Instructions Under the earning ...Dave Scotland Inc. (DSI) sold inventory to a new customer, Jamali Ltd., on December 20, 2014. Jamali was given a significant discount to entice it to switch from its regular supplier. Jamali asked DSI not to ship the ...Vaughan Construction Ltd. has entered into a contract beginning in February 2014 to build two warehouses for Atlantis Structures Ltd. The contract has a fixed price of $9.5 million. The following data are for the ...
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