Big Rock's revenue recognition is based on product sales at the time the product is shipped, and the following conditions exist: • Title has passed to the purchaser according to the shipping terms. • The price is fixed and reasonably determinable, and collection of the sales proceeds is reasonably assured. • Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns, allowances, discounts, applicable federal and provincial production, environmental and excise taxes levied by provincial liquor boards and the federal government. Product which has passed its expiration date for freshness or has been damaged and is returned by distributors is accepted and destroyed.

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Based on the given conditions the revenue recognition policy of Big Rock is as follows Revenue recog... View the full answer