Question: For contracts with a significant financing component, the transaction price is calculated by: Select one: a.Measuring the non-cash consideration indirectly by reference to the estimated

For contracts with a significant financing component, the transaction price is calculated by:

Select one:

a.Measuring the non-cash consideration indirectly by reference to the estimated stand-alone selling price of the promised goods or services.

b.None of the given choices.

c.Discounting the amount of promised consideration, using the same discount rate that an entity would use if it were to enter into a separate financing transaction with the customer.

d.Including the fair value of any non-cash consideration it receives (or expects to receive) in the transaction price.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at 3301 Pacific Coast Hwy., Laguna Beach, CA 92651. Brian is an optometrist who owns his business;...

Case 1: P. Property Revenue recognition P. Co. is one of Hong Kongs leading property development companies. The companys shares have been listed on the main board of the Hong Kong Stock Exchange...

P. Property Revenue recognition A. Co. is one of HKs leading property development companies. The companys shares have been listed on the main board of the HK Stock Exchange since 2007. The principal...

Selling Price Invoice date Customer Name Relationship Gross Amount in Local Currency Amount in doc. curr. Document currency Description Net due date 5 15/8/2020 Jerome Third Party 78,154.00 1,563.00...

SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation Business Combinations The consolidated financial statements comprise the financial statements of the Company and its subsidiary company as at...

What is the relevant cash element above the significant policy Urgent!!! pls highlight exactly Significant accounting policy Basis of Consolidation Business Combinations The consolidated financial...

What is the relevant cash element above the significant policy pls highlight exactly SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation Business Combinations The consolidated financial statements...

I posted two annual reports one is Microsoft and other one is Game Stop can i plzz know what are the similarity and difference can i plzz get similarities and. difference from these two reports.......

I posted two annual reports one is Microsoft and other one is Game Stop can i plzz know what are the similarity and difference Dividends we paid cast dividends of $40.5 million, $17.4 milion and...

FSB In Focus Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue is one of the most important measures used by investors in assessing a company's...

Please find attached financial statements for Apple Inc, Samsung Inc. and word document that contains template and question. (for Samsung Inc, you can use the information from page 4 to 14). 1....

The visible absorption spectrum of a solution of the complex is: Administrator Analyst Date Tuesday, 9 August 2011 9:42 AM 9/08/20119 450 500 600 400 650 700 Note that there is only one absorption...

Suppose m linear systems Ax (p) = b (p) , p = 1, 2, . . . ,m, Are to be solved, each with the n n coefficient matrix A a. Show that Gaussian elimination with backward substitution applied to the...

How to domestic and international practices of settling trade transactions differ

Please Answer A and B As the financial manager for a sporting goods manufacturer, you are responsible for the firm cash management activities, including the cash collection system. Your firm receives...