C4: REVENUE RECOGNITION Flashcards

1
Q

Inflows from cash and accounts receivable, such as sale of goods and provision of services are an example of:

A

Revenue

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2
Q

Two types of Revenue Recognition:

A
  1. IFRS (Contract-based)
  2. ASPE (Earnings-based)
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3
Q

What is a contract based revenue recognition?

A

IFRS

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4
Q

Revenue is recognized whenever a company’s net position ____________.

A

Increases

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5
Q

T/F: If performance obligations decrease, then we cannot recognize revenue.

A

False

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6
Q

Companies must fulfill ____________________ to increase net position.

A

Performance Obligations

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7
Q

Is assurance warranty a performance obligation?

A

No

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8
Q

Companies estimate expected returns and also allocate a portion of the transaction price to service warranties to avoid:

A

Revenue Recognition Issues

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