IFRS N ASPE

Question 1

IAS 18 Revenue Recognition- Sales of goods

Answer 1

1. The risks and rewards of ownership have transferred.
   -when the entity retains an obligation for unsatisfactory performance not covered by
   normal warranty provisions;
   -when the receipt of the revenue from a particular sale is contingent on whether the
   buyer sells the goods (consignment arrangements);
   -when the goods are shipped subject to installation and the installation is a significant
   part of the contract which has not yet been completed by the entity; and
   -when the buyer has the right to return the good and the entity is uncertain about the
   probability of return.
2. The seller retains no ongoing involvement or control over goods transferred.
3. Revenue can be measured reliably.
4. It is probable that economic benefits will flow to the seller.
5. The seller’s costs can be measured reliably.

Question 2

IAS 18 Revenue Recognition- Rendering of Services

Answer 2

1. Revenue can be measured reliably.
2. It is probable that economic benefits will flow to the seller.
3. The stage of completion at the end of the reporting period can be measured reliably.
4. The seller’s costs can be measured reliably.

Question 3

IAS 18 Revenue Recognition- Multiple Deliveries

Answer 3

when a component of a sale
 has stand-alone value (i.e. it may be sold separately alone); and
 the fair value of that component can be objectively measured