Question: IFrs 1 5 sets out criteria for when a performance obligation is satisfied. Which one of the following statements is reasonable 1 . Fitz inc

IFrs

15

sets out criteria for when a performance obligation is satisfied. Which one of the following statements is reasonable

1 .

Fitz inc contracts with cinema lts to write a screen play about an iconic lion. The screen play may take upto

18

months to complete. The contract states that Fitz inc is only entitled to compensation for potential loss of profit if the contract were to be terminated. Fitz inc has an enforceable right to payment.

2 .

Wipe and clean inc enters into a ten year commercial cleaning contract with maverick sound studios inc. Wipe & clean cleans Mavericks premises after hours. Wipe & clean inc recognises revenue over time because maverick sound studios inc simultaneously receives and consumes the benefits as wipe & clean inc cleans

4 .

Assembly inc enters into a contract with teslo ltd to assemble a car component to be used in the construction of teslo's electric car. At reporting date assembly inc had sourced standard inventory items which can be used in any component assembly. The standard inventory items have no alternative use to assembly inc

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