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Homework answers / question archive / When determining the transaction price under IFRS 15 Revenue from Contracts with Customers which of the following should NOT be considered? Select one: a
When determining the transaction price under IFRS 15 Revenue from Contracts with Customers which of the following should NOT be considered? Select one: a. The existence of a significant financing component within the contract b. Non-cash consideration C. Consideration payable to a customer for a distinct good or service from that customer d. Variable consideration Question 20 Not yet answered Marked out of 1.00 p Flag question Which of the following would be treated as a change in accounting policy under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors? - Select one: a. A change in the residual value of a two-year old machine b. A change from the straight-line to reducing balance method of depreciation c. A change in the presentation of plant depreciation from operating expenses to cost of sales d. A change in the total useful life of a two-year old machine from four years to six years
1. Answer: C
Explanation: As per IFRS 15, The consideration payable to a customer for a distinct good or service from that customer is considered as a separate contract and should not be included in the transaction price of the other contract.
2. Answer: C
Explanation: Change in Classification of an income or expense is a change in Accounting Policy.
Option A: Change in Residual value of asset is a change in Accounting estimate
Option B: Change in depreciation method is a change in Accounting estimate
Option D: Change in Useful life is a change in Accounting estimate