Question: IFRS 15 sets out when a performance obligation is satisfied at a point in time. Which one of the following statements is correct? If a

IFRS 15 sets out when a performance obligation is satisfied at a point in time. Which one of the following statements is correct?

  • If a performance obligation is not satisfied over time, the presumption is that control transfers at a point in time, i.e., revenue must be recognized at a point in time.
  • The indicators to determine the point in time when a customer obtains control of a good or service are individually determinative as to whether the customer has gained control or not.
  • IFRS 15’s indicators to determine the point in time when a customer obtains control are not factors to consider but rather criteria that have to be met for point in time recognition.
  • If a performance obligation is not satisfied at a particular point in time, the presumption is that control transfers over time, in other words, revenue must be recognized over time.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The correct statement is If a performance obligation is not satisfied over time the presumption is t... View full answer

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 General Management Questions!

Q:

1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...

Q:

Let r and s be solutions to the quadratic equation x 2 b x + c = 0. For n N, define d0 = 0 d1 = r s dn = b dn1 c dn2 (n 2) Prove that dn = r n s n for all n N. [4 marks] (b) Recall that a commutative...

Q:

can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...

Q:

IFRS 15 sets out when a performance obligation is satisfied at a point in time. Which one of the following statements is correct? If a performance obligation is not satisfied at a particular point in...

Q:

IFRS 15 sets out when a performance obligation is satisfied at a point in time. Which one of the following statements is correct? If a performance obligation is not satisfied over time, the...

Q:

Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. @ $5 per lb.) Direct labor (3 hrs. @ $15 per...

Q:

Check my work 5:33 Grover Incorporated uses the allowance method to account for uncollectible accounts expense. Grover Incorporated experienced the following four accounting events in Year 1 1....

Q:

Which statement(s) is (are) true? (I) If a customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs, the underlying performance...

Q:

Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (ie., cost drivers), namely guests and jeeps. One vehicle used in...

Q:

1.Which of the following statements is incorrect if an entity's promise to grant a license is not distinct and that the performance obligation is satisfied at a point in time? Treat all promises in...

Q:

In 2010, US import was $230 and export was $230. How much was US net export? Your Answer: Answer Question 42 (2 points) 40Listen Nominal GDP Real GDP $114 $123 $127 2011 $120 2012 $123 2013 $135...

Q:

Design a double-blind placebo-controlled trial to study the effects of sugar on hyperactive children. Please describe how you would design this study.

Q:

When companies employ push down accounting: a special account called revaluation capital will appear in the consolidated balance sheet

Q:

Kirchhoff Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8....

Q:

For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented...

Q:

What SPSS procedures can be used for data screening of quantitative variables?

Q:

Collegiate Rings produces class rings. Its best- selling model has a direct materials standard of 9 grams of a special alloy per ring. This special alloy has a standard cost of $ 63.70 per gram. In...

Q:

The following items were selected from among the transactions completed by Pioneer Co. during the current year: Mar. 1. Purchased merchandise on account from Galston Co., $360,000, terms n/30. 31....

Q:

Which of the following is a method of allocating joint costs such that joint costs are prorated to product lines based on each product line s revenue minus separable costs? Multiple Choice Sales...

Q:

McDonalds Corporation franchises and operates more than 36,000 fast-service restaurants around the world. Buffalo Wild Wings franchises and operates more than 1,000 restaurants in North America....

Q:

On December 31, 20X1, Lane, Inc., sold equipment to Nolte and simultaneously leased it back for 12 years. Pertinent information at this date is as follows: Sales price (received in cash)...

Q:

During August 20X1, Packer Manufacturing had the following cash receipts and disbursements: Cash received from customers ................................................ $319,000 Cash received from...

Q:

Digital Devices sets its retail prices on computers, monitors, and printers to generate a 30% rate of markup on selling price. Overhead expenses normally work out to be 30% of cost. What is the...

Q:

Digital Devices plans to stop carrying the Casio FC-100 calculator. It normally marks up the calculator from the $71.50 wholesale cost to the regular selling price of $99.95. a. What is the normal...

Q:

Workwear Station uses a markup on cost of 60% to establish its retail prices. This pricing rule builds in a profit of 25% of cost. What rate of markdown can Workwear Station offer and just break even...