unit 4 | revenue & accounts receiable

Question 1

ASPE revenue recognition criteria (goods)

Answer 1

1. risks & rewards have been transferred to the buyer
2. collection of payment is reasonably assured
3. measurable consideration (price can be determined)
4. performance under arrangement has been completed (good provided)

Question 2

ASPE revenue recognition criteria (service)

Answer 2

1. collection of payment is reasonably assured
2. measurable consideration (price can be determined)
3. performance under arrangement has been completed (service provided)