Under IFRS 15, when shall the incremental cost of obtaining a contract with a customer be recognized as an asset? When the entity expects to recover those costs. When it is probable that future economic benefits will flow to the entity and the cost can be measured reliably When the costs will decrease the revenue in the future periods. When the costs will provide economic benefits for a period less than 12 months.

Under IFRS 15, when shall the incremental cost of obtaining a contract with a customer be recognized as an asset? When the entity expects to recover those costs. When it is probable that future economic benefits will flow to the entity and the cost can be measured reliably When the costs will decrease the revenue in the future periods. When the costs will provide economic benefits for a period less than 12 months.

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter5: Corporate Ethical Governance & Accountabililty

Section: Chapter Questions

Problem 19.1EC

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Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the consignor receives cash remittance from the consignee. B When it is probable that future economic benefits will flow to the consignor and the fair value of the revenue can be measured reliably. C When the consignor enters into a consignment contract with a consignee. D When the consignor satisfies its performance obligation under consignment contract.
When is an estimated loss on a long-term contract recognized, both for contracts that recognize revenue over time and those that recognize revenue at the point in time the contract is completed?
Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable
1. Assuming the investment is appropriately recognized as financial assets at amortized cost: What is the carrying value of the investment on December 31, 2020? 2. Assuming the investment is appropriately recognized as financial assets at amortized cost: Determine the gain or (loss) to be recorded upon the sale of the investment. 3. Assuming the investment is appropriately recognized as financial assets at amortized cost: How much interest income is to be recognized in 2021?
33. Entity A enter into a long-term contract to provide service. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to PPSAS, how should entity A recognize revenue from the contract? On a straight-line basis over the contract term By reference to the stage of completion of the contract at the reporting date Full recognition of contract price upon completion of the contract Only to the extent of costs that are expected to be recovered.
How do companies account for long-term contracts that qualify for revenue recognition over time?
15 When it is probable that total contract costs will exceed total contract revenue, how shall the long-term contractor account for the difference? Group of answer choices a. The expected profit shall be recognized as a profit immediately. b. The expected loss shall be recognized as an expense taking into account the percentage of completion as of the end of the period. c. The expected loss shall be recognized as a profit taking into account the percentage of completion as of the end of the period. d. The expected loss shall be recognized as an expense immediately.
Which is not a scenario wherein revenue is recognized over time? a. The customer simultaneously receives and consumes the benefits by the entity’s performance b. The entity’s performance creates or enhances an asset that will be transferred to the customer at a future date c. 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 d. All of the above are scenarios wherein revenue is recognized over time e. None of the above
Demonstrate revenue recognition for long-term contracts, both at a point intime when the contract is completed and over a period of time according to thepercentage completed.
If the outcome of a long-term contract can be measured reliably, the preferred accounting method under both IFRS and US GAAP is: A . the cost recovery method.
. An entity has agreed to a three-year contract with a customer. Recognizing revenue from long-term contracts over a period of time is not required when A. The customer consumes the performance obligation as it is being delivered. B. The customer has direct use of the performance obligation. C. The customer has control over the performance obligation while it is being created. D. The entity has no alternative use for the performance obligation
Which of the following statements regarding the recognition of expenses related to long-term contracts under IFRS is true? A: General and administrative expenses are normally recognized as an asset. B: The cost of wasted resources of an abnormally high amount are recognized as an asset until the performance obligation has been met. C: If capitalized costs are no longer expected to be recovered through the contract, a portion of contract revenue should be reversed. D: Costs that will be reimbursed by the customer are recognized as an asset.