SUBJECT: ACCOUNTING FOR SPECIAL TRANSACTIONS

TOPIC: CONSIGNMENT SALES

6. Under PFRS 15, how does a consignor satisfy its performance obligation under consignment contract? * (1 Point] O a. Satisfaction over a period of time 0 b. Satisfaction at a specic point in time 0 Either a or b 0 Neither 3 nor b 1". Under PFRS 15, what is the measurement of consignment sales revenue? * ['1 Point} O Realizable value of consideration received or receivable 0 Fair value consideration received or receivable 0 Cost of consideration received or receivable 0 Book value consideration received or receivable 8. Defective goods subject to rework are expensed by the consignor. "l ['1 Point} O Tale 0 False 9. Freight on returned goods are treated as inventoriable costs. * [1 Point} 0 True 0 False 10. Under PFRS 15, which of the following factors indicates that the revenue from contracts with customers is recognized from the moment the entity satisfies the performance obligation at a point in time? * [ (1 Point) O When the entity's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. O When the customer simultaneously receives and consumes all the benefits provided by the entity as the entity performs. O When the entity's performance creates or enhances an asset that the customer controls as the asset is created When the entity has transferred physical possession of the asset to the customer