Assume that a contract involves a significant financing component. In this scenario, which of the following statements is accurate?

Select answer from the options below

The time value of money is considered when determining the transaction price if payment occurs more than a year in the future.

The transaction amount should be based on the current sales price of the goods or services involved in the contract.

The time value of money must always be considered when determining the fair value of the transaction.

Interest should be accrued based on the current sales price of the goods or services involved in the contract.